What was the state current income tax liability for Management Recruiters as of December 31, 2021?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
legal proceedings as of December 31, 2021.
Note 12 – Income Tax
The provision for income taxes is comprised of the following:
| December 31, 2021 | December 31, 2020 | ||
|---|---|---|---|
| Current | |||
| Federal | $ 2,032,751 | $ | 1,812,710 |
| State | 971,936 | 696,154 | |
| Deferred | |||
| Federa |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the company's state current income tax liability as of December 31, 2021, was $971,936.
This figure represents the amount of state income taxes that Management Recruiters was obligated to pay at that specific point in time. It is a snapshot of their tax liabilities and does not reflect the total tax expenses for the entire year. Franchisees should understand that this liability can fluctuate based on various factors, including profitability, changes in state tax laws, and the timing of tax payments.
Prospective franchisees should consult with a financial advisor to understand the implications of these tax liabilities and how they might affect the overall financial health of Management Recruiters. Understanding the company's tax obligations can provide valuable insights into its financial stability and management practices.