What is Corporate Franchise Tax?
The Ohio corporate franchise tax is an excise tax imposed on corporations (other than nonprofit corporations) for the privilege of exercising their corporate franchise in Ohio. The tax applies to both domestic corporations (those incorporated in Ohio) and foreign corporations (those incorporated outside of Ohio) for the privilege of doing business in Ohio, owning capital or property in Ohio, holding a charter or certificate of compliance authorizing the corporation to do business in Ohio, or otherwise having a presence (nexus) in Ohio during a calendar year. Unless an exemption applies, a corporation that has nexus in or with Ohio, under the Constitution of the United States, is subject to the corporate franchise tax.
