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  1. Jan 10, 2024 · The PTET election will remain effective for the successor entity. If the successor entity did not retain the original entity's EIN, it should file the PTET return using the original entity's EIN. PTE taxable income and PTET credits should be computed based upon K-1 amounts reported under the successor entity's EIN.

  2. Individuals and businesses impacted by the San Diego County floods have until June 17, 2024, to make their PTE elective tax payments due between January 21, 2024, and June 17, 2024 (this includes PTE elective tax payments due on March 15, 2024, for calendar year taxpayers). The pre-payments due on June 17, 2024, remain due on or before that date.

  3. An entity in this situation must apply for exemption so the Comptroller’s office can determine if the entity qualifies for franchise tax exemption. If the entity does qualify, the Comptroller’s office will issue a tax clearance letter for the exempt entity to file with the application for reinstatement with the SOS.

  4. Jan 16, 2024 · Texas calculates franchise tax based on a percentage of the taxable margin or a flat rate, with a minimum tax due of $1,000. If we assume a taxable margin of 10% and a tax rate of 0.375% (applicable to retailers and wholesalers), the franchise tax due would be $1,200 x 10% x 0.375% = $450.

  5. The California Franchise Tax Board oversees the administration of franchise taxes, ensuring compliance and fair practices. Minimum Franchise Tax: The FTB enforces the payment of the minimum franchise tax, which is a fixed annual fee that most entities must pay, regardless of their income or losses. Currently, the minimum amount is typically $800.

  6. A franchise tax is imposed on each taxable entity that does business in this state or that is chartered or organized in this state. Tex. Tax Code § 171.001(a). A taxable entity’s franchise tax liability is determined by calculating the entity’s taxable margin, which first includes determining the entity’s revenue. Id. § 171.1011(c).

  7. Definitions. Corporation - A legal entity that exists separately from the people who own, manage, control, and operate it. It can make contracts, pay taxes, and is liable for debts. Contact the California Secretary of State (SOS) to incorporate or qualify your business at 916-657-5448, or go to sos.ca.gov.

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