As a partnership, does Buona pay income taxes on its taxable income?

According to Buona's 2025 Franchise Disclosure Document, Buona is taxed as a partnership and does not pay income taxes on its taxable income. Instead, the members are liable for income taxes on their proportionate share of the company's taxable income. Certain deductions and credits flow through the company to its stockholders. Buona files an Illinois partnership income tax return and pays 1.5% on the net taxable income.

This means that as a franchisee, you will not be directly responsible for Buona's income taxes. However, as a member or stockholder, you will be liable for income taxes on your share of Buona's taxable income. The 1.5% tax paid on the net taxable income in Illinois could affect the overall profitability of the franchise, as this is an expense that Buona must cover.

It is important for prospective franchisees to consult with a financial advisor or tax professional to understand the full tax implications of investing in a Buona franchise, particularly regarding their individual liability for income taxes on their share of the company's taxable income. Understanding these obligations is crucial for accurate financial planning and ensuring compliance with tax laws.