Even though they may be exempt from corporate income taxes, many states require LLCs to pay an annual franchise tax.

Name: Even though they may be exempt from corporate income taxes, many states require LLCs to pay an annual franchise tax.
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Question

Quizplus · Accepted Answer

This is true. Many states require LLCs to pay an annual franchise tax, even if they are exempt from corporate income taxes. The franchise tax is commonly based on a company's revenue or assets, and the amount may vary depending on the state.

Even Though They May Be Exempt from Corporate Income Taxes