What was the total provision for state income taxes for Burros Fries?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
tate income taxes on their share of the Company's taxable income.
The Company's provision for income taxes for the year ended December 31, 2022 is $2,137 and represents the statutory California S Corporation Franchise Tax of 1.5% applicable to S Corporations. The Company recognized an income tax benefit of $12,211 for the year ended December 31, 2023. The benefit is a result of the Company making an S election for the 2021 tax year after the Company had a
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the company's provision for income taxes for the year ending December 31, 2022, was $2,137. This amount represents the statutory California S Corporation Franchise Tax of 1.5% applicable to S Corporations.
For the year ending December 31, 2023, Burros Fries recognized an income tax benefit of $12,211. This benefit resulted from the company making an S election for the 2021 tax year, after initially providing for taxes at higher statutory corporate tax rates.
Prospective franchisees should note that these figures reflect the income tax situation for Burros Fries as a corporate entity and may not directly translate to the tax obligations of individual franchisees. Franchisees should consult with a tax professional to understand their specific tax liabilities and planning strategies.