Beware of Margin Tax Pass-Throughs

Beware of Margin Tax Pass-Throughs

If your state currently has a “franchise tax,” there's a possibility that you could see your operating expenses increase in the future. A franchise tax is a tax levied by the state against businesses that have incorporated in that state. At first glance, franchise taxes don't seem to have anything to do with operating expenses, but depending on what your state decides to do with the franchise tax, your operating expense budget could take a direct hit.

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