Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

What is the minimum fee for corporation franchise tax?

For taxable years ending on or after June 26, 2003, the minimum franchise tax fee is $1,000 if (i) the sum of the taxpayer’s gross receipts from its activities within and without Ohio during the taxable year equals or exceeds $5 million, or (ii) the total number of the taxpayer’s employees within and without Ohio at any time during the taxable year equals or exceeds 300. In determining whether or not the taxpayer’s gross receipts and number of employees equal or exceed those thresholds, the taxpayer must include its proportionate share of the gross receipts of any pass-through entity in which the taxpayer has a direct or indirect ownership interest and its proportionate share of the number of employees of the pass-through entity.

Furthermore, the term “gross receipts” as used here, includes receipts that generate nonbusiness income and receipts from the sale of capital assets and IRC section 1231 assets whether those sales generate business income or nonbusiness income. The minimum fee is $50 for taxable years ending before June 26, 2003 and for taxpayers whose taxable year ended on or after June 26, 2003, but whose gross receipts and number of employees are less than the thresholds discussed above. Please refer to R.C. 5733.06(E) as amended by House Bill 95.

The minimum fee is not subject to the franchise tax phase-out factor. Please refer to FAQ #4 regarding the franchise tax phase-out.