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WebNov 30, 2024 · The only types of business entities that are not subject to the franchise tax are sole proprietorships, and general partnerships where the partners are all natural persons—that is, no partner is a corporation, LLC, or other type of business entity. For more information on LLC taxes in Texas, visit the Texas Comptroller's website. WebMar 29, 2024 · In California, an S corp has a franchise tax of 1.5%. Corporations with a C Corp IRS tax classification have double taxation (business is taxed and shareholders are taxed again on business distributions) and LLCs have pass-through taxation (all profits, credits, distributions, deductions, and losses pass directly to the owner). WebAug 14, 2024 · The Benefits of Each. One of the primary benefits of a company choosing to sell franchises is that it provides extra capital and helps with funding. By selling … girl with the dragon tattoo series dvd