Glossary • Updated 2026
By Srikanta M.Reviewed against FTB / SOS sources: September 2026Methodology

Franchise Tax

A state charge for the privilege of doing business there, often owed even with zero profit.

In detail

California charges $800 minimum; Delaware corps pay via Authorized Shares or APV methods.

Despite the name, most franchise taxes function like minimum income or asset taxes.

Missing them triggers penalties plus loss of good standing.

Where it matters

More definitions

Sources

  • Cal. Rev. & Tax Code; 8 Del. C.; Wyo. Stat. Title 17; FTB/SOS glossaries