retail organizations. In marketing: Corporate chains. …lines of merchandise are considered corporate chain stores. Corporate chain stores appear to be strongest in the food, drug, shoe, variety, and women's clothing industries. Managed chain stores have a number of advantages over independently managed stores.
In this way, what is a corporate franchise tax?
A franchise tax is a government levy (tax) charged by some US states to certain business organizations such as corporations and partnerships with a nexus in the state. A franchise tax is not based on income. Rather, the typical franchise tax calculation is based on the net worth of or capital held by the entity.
What type of business entity is a franchise?
The most important reason you might want to operate the Franchised Business through an entity (instead of as a sole proprietor) is to shield yourself from personal liability for the debts or other obligations of the Franchised Business. A C-corporation, an S-corporation or an LLC all offer this type of protection.
Can you have an LLC with a franchise?
Buying a franchise does not automatically provide you with limited liability. The franchisor may be a corporation or LLC but that does not make your own franchise business a corporation or LLC. Otherwise, you will have a sole proprietorship or partnership which could subject you to personal liability.