What is the Minimum Franchise Tax on a North Carolina S corporation or Corporation return?
Per the NC S Corporation Instructions:
"The franchise tax rate is $200 for the first one million dollars
($1,000,000) of the corporation’s tax base and $1.50 per $1,000
of its tax base that exceeds one million dollars ($1,000,000). The
franchise tax can be no less than $200 with no maximum except
for a qualified holding company."
Per the NC C-Corporation Instructions:
"Franchise tax is computed by applying the rate of $1.50 per $1,000.00, and can be no less than $200."
​Note: No franchise tax is calculated on a final return.