The franchise tax is a tax imposed by the state that is imposed on companies to allow them to legally and commercially operate in the USA or a certain regions. It is an essential requirement to be able to legally establish your company and maintain good standing in Delaware Franchise Tax and Annual Report. The franchise tax you pay will be determined by the nature of your company and not the amount of income the business earns.
Many business owners in Delaware Franchise Tax and Annual Report are confused by the meaning of franchise taxes. They mistake it for the tax that is imposed on franchises and believe that the tax has no connection with the business they operate. Many aren’t sure what it is, which can cause them to be faced with tax issues.