What was the amount of state income taxes paid by C12 Group in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Income Taxes: The Company, as an LLC, is not a taxpaying entity for federal income tax purposes. Accordingly, income and loss are passed directly to its members and taxed at their individual level. Management is not aware of any tax positions that would have a significant impact on its financial position. Its federal tax returns for the last four years remain subject to examination. The Company is subject to the Texas margin tax.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group, as an LLC, is generally not a taxpaying entity for federal income tax purposes. Instead, income and loss are passed directly to its members and taxed at their individual level. However, C12 Group is subject to the Texas margin tax. The document does not specify the exact amount of Texas margin tax paid in 2023. A prospective franchisee should inquire with C12 Group about the specific amount of Texas margin tax paid in 2023 to gain a clearer understanding of the company's state tax obligations.