Skip to main content

Buy Now and Pay Later with 0% APR Credit Cards

  Use 0% APR Credit Cards to Make Purchases Now and Pay Later If you are need extra cash to make a big purchase, you may use a 0% APR credit card to buy now and pay later.  Credit cards with 0% intro APR  allow you to charge a purchase to your credit card now and pay off the credit-card balance over time without incurring interest or fees, as long as you make the  minimum payments  every month. At this time, many credit cards offer 0% introductory APR on purchases for 12 months or more. If you are short of cash for an expensive purchase, you can open a new credit card with 0% intro APR to enjoy the buying power now. After that, you can just make the minimum payment each billing cycle to avoid finance charges and pay off all the remaining balance at the end of your 0% introductory period. In this way, a 0% APR credit card not only helps you afford the purchase, but also helps you save money by paying no interest for a long time. Best 0% APR Credit Cards on Purchases Choose from one of t

Franchise Tax

Franchise tax is a tax levied on the state stage towards companies and partnerships that operate inside that state. 

1. What Is Franchise Tax?
2. Breaking Down Franchise Tax
3. How Businesses Pay Franchise Taxes
4. Local Franchise Taxes and Fees
5. Understanding the Franchise Tax
6. Which States Have Franchise Taxes?
7. How States Define Franchise Taxes
8. Examples of Franchise Tax Computation
9. How Do You Pay Franchise Taxes in Your State?

What Is Franchise Tax?

Franchise tax is a tax levied at the state level on companies and partnerships that operate in that state. Only companies pay franchise taxes. What companies owe is based on their complete income minus what they pay in compensation to staff or for purchasing packaged or processed items. The distinction between income and these prices is called the margin, which is why the tax is frequently called the “margin tax." The most important Texas tax paid solely by companies, the franchise tax had been the second-largest supply of state tax income, after the state gross sales tax. In 2015, the Texas Legislature diminished the franchise tax charge by one fourth, resulting in a more than $1 billion drop in annual state revenue.

In some states, business with operations in that state may also be charged for the tax even when they're chartered in another state.

Breaking Down Franchise Tax

The amount of franchise tax in a state can differ significantly based on the tax guidelines in that state. Some states will calculate the amount of franchise tax owed primarily based on property or net worth of the enterprise, whereas other states examine the stock of the corporation.

How Businesses Pay Franchise Taxes

Almost every state has some tax on business income. There are some states that only tax corporations and there are some states that will tax almost all business entities. These taxes can go by several different names and meanings. For instance, a franchise tax is the name California gives to this tax.

It’s important to understand that sole proprietorships aren’t typically subject to a franchise tax or other business taxes because they are not usually registered in the state in which they operate.

Local Franchise Taxes and Fees

Local franchise taxes or fees are a legislatively mandated method of compensating cities for the use of public rights-of-way by telecommunications providers.

Local franchise tax is also known as local license fee, state communications service tax, franchise fee, franchise tax, or business and occupation tax.

Understanding the Franchise Tax

A “privilege” tax is another word used to describe franchise tax. This concept means that businesses are being taxed for the right to do business within that state.

There are some states that impose a privilege tax and an income tax. Interestingly enough, West Virginia, and other states, are trying to increase business growth by eliminating franchise taxes altogether.

Which States Have Franchise Taxes?

As it stands, the states that currently impose a franchise tax on their businesses include:

  • Alabama
  • Arkansas
  • Delaware
  • Georgia
  • Illinois
  • Louisiana
  • Mississippi
  • Missouri
  • New York
  • North Carolina
  • Oklahoma
  • Pennsylvania
  • Tennessee
  • Texas
  • West Virginia

How States Define Franchise Taxes

Every state above has a unique process for defining the franchise tax and the businesses that must pay them. They may also have different tax rates and basis for the tax.

Some of the standards for determining franchise tax include: revenue, stock value, company value, asset value, investment made, or gross receipts.

Examples of Franchise Tax Computation

Texas doesn’t have a franchise tax on sole proprietorships even though they do on almost every other business classification. Texas uses margin, or adjusted revenue, to determine its franchise tax. California is another state that imposes a franchise tax on its businesses. It uses a Franchise Tax Board to control the process. Louisiana has franchise and income taxes that businesses or taxable entities must pay.

How Do You Pay Franchise Taxes in Your State?

Many companies (besides sole proprietors) will need to file or register in the state in which they operate. After registering, you will be contacted by your state. You can even verify your franchise tax process and other relevant tax information for your business by contacting your state department or local officials.

If you need help understanding franchise tax, you can contact us.

Popular posts from this blog

Buy Now and Pay Later with 0% APR Credit Cards

  Use 0% APR Credit Cards to Make Purchases Now and Pay Later If you are need extra cash to make a big purchase, you may use a 0% APR credit card to buy now and pay later.  Credit cards with 0% intro APR  allow you to charge a purchase to your credit card now and pay off the credit-card balance over time without incurring interest or fees, as long as you make the  minimum payments  every month. At this time, many credit cards offer 0% introductory APR on purchases for 12 months or more. If you are short of cash for an expensive purchase, you can open a new credit card with 0% intro APR to enjoy the buying power now. After that, you can just make the minimum payment each billing cycle to avoid finance charges and pay off all the remaining balance at the end of your 0% introductory period. In this way, a 0% APR credit card not only helps you afford the purchase, but also helps you save money by paying no interest for a long time. Best 0% APR Credit Cards on Purchases Choose from one of t

0% Intro APR Credit Cards

  Credit cards with 0% intro interest on purchases can help you save money. Whether you are trying to pay off your debt or you need to make a big purchase in the near future, credit cards that offer 0% introductory APR on purchases let you borrow money from banks now and pay off debt later without incurring any interest or fees, as long as you make the   minimum payments   every month. Related:  Buy Now and Pay Later with 0% APR Credit Cards Apply Now BankAmericard® credit card New Offer! $100 statement credit online bonus after making at least $1,000 in purchases in the first 90 days of account opening. 0% Introductory APR for 18 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends, 12.99% - 22.99% Variable APR will apply. A 3% fee (min $10) applies to all balance transfers. No annual fee No penalty APR. Paying late won't automatically raise your interest rate (APR). Other account pricing and terms apply. Access your

What is a Minimum Payment?

Many of you have probably noticed that the little section on your credit card bill that reads “Minimum Payment” is considerably lower than your entire bill. The convenience of owning a credit card is having the option of putting off a bill, like a loan, and paying it later. You still have to pay something every month if you want to avoid any penalty fees, though. That is where the minimum payment comes in — the lowest amount of money that you are required to pay on your credit card statement each month. Credit card companies are required to set the minimum fee so it is possible to bring your balance down, provided you don’t charge anything extra to your balance. Minimum Payment Calculation Every credit card company will stipulate their minimum payment calculations in the agreement you initially sign. This will either be a flat fee, or it will be a percentage of your outstanding balance. If your minimum payment is based on a percentage of your balance, it could be anywhere between 1% an