State Business & Franchise Tax Guides

Every Delaware corporation — even ones that never did business in Delaware — owes the Delaware annual franchise tax (often called DE franchise tax) plus an annual report. Miss it and you face penalties, interest, void status, and eventually personal liability for officers and directors.

California's $800 minimum franchise tax hits every LLC, corporation, and LP doing business in California — even if you lost money, even if you only have one employee in California, even if you're a foreign entity that registered and forgot. Plus an additional gross-receipts-based LLC fee on top.

Texas calls it 'franchise tax' but it functions as a gross-margin tax on every entity formed in or doing business in Texas. With a $2.47M no-tax-due threshold for 2024-2025, most small businesses owe nothing — but they still must file the Public Information Report, and missing it forfeits the entity's right to do business in Texas.

New York's corporate franchise tax (Article 9-A) hits every C-corp and S-corp doing business in New York with a tax based on the higher of: business income, business capital, or a fixed minimum dollar amount ranging from $25 to $200,000 based on receipts. New York City adds its own General Corporation Tax on top.

New Jersey's Corporation Business Tax (CBT) hits every corporation doing business in New Jersey at rates from 6.5% to 9% on allocated net income, with a minimum CBT ranging from $500 to $2,000. New Jersey LLCs taxed as corporations are subject too — and the state aggressively enforces nexus on out-of-state sellers.</

Massachusetts's Corporate Excise Tax applies to every corporation doing business in MA at 8% of net income plus a property/net-worth measure, with a $456 minimum excise tax owed regardless of activity. The Department of Revenue (DOR) actively files tax liens and pursues responsible officers personally.

Florida has no corporate income tax for most pass-through entities and no personal income tax — but every employer owes Florida Reemployment Tax on the first $7,000 of each employee's wages. Miss it and the Department of Revenue files a tax warrant against the business and personally against officers.

Pennsylvania imposes a Corporate Net Income Tax on every C-corp doing business in PA — currently 7.99% (dropping under Act 53 of 2022 to 4.99% by 2031). PA also imposes the Capital Stock/Foreign Franchise Tax for pre-2016 years, which still drives many open assessments today.

Ohio's Commercial Activity Tax is a gross-receipts tax — meaning it's owed on revenue regardless of profit. Effective 2024, Ohio raised the exclusion to $3 million in gross receipts ($6 million in 2025), eliminating CAT for most small businesses but still hitting mid-market and large companies hard.

Washington has no corporate or personal income tax — but every business owes Business & Occupation tax on GROSS RECEIPTS, with no deductions for cost of goods, labor, or overhead. Rates vary from 0.13% to 3.3% depending on classification. Misclassification is the most common B&O assessment driver.

Illinois imposes the Personal Property Replacement Tax (PPRT) on ALL entities doing business in IL — including pass-through LLCs and S-corps that owe no corporate income tax elsewhere. Rates are 2.5% for C-corps and 1.5% for S-corps, partnerships, and trusts.

Georgia imposes both a 5.39% corporate income tax (dropping to 5.19% in 2025) AND an annual Net Worth Tax on every corporation doing business in or qualified to do business in Georgia. The Net Worth Tax is a flat fee tiered by net worth, with rates up to $5,000 per year per corporation.