Franchise taxes

[Coal]

I have a client who is buying a Subway Franchise, Where can I find helpful information? She will be buying an existing operating store. She asked me to help her get set up, keep her books and do the payroll.
Thank you!

[Snaggletooth]

Franchise Fee

Coal, what you are speaking of is a Franchise Fee charged by Subway, and has very little to do with a Franchise Tax. A Franchise Fee such as this is amortizable over a period of time for tax purposes.

I would advise you get some training in the area of taxes, although you may very well be qualified to do basic bookkeeping and payroll. The question you ask reveals a level of misunderstanding about taxes.

[RitaB]

My first impression

Coal, what you are speaking of is a Franchise Fee charged by Subway, and has very little to do with a Franchise Tax. A Franchise Fee such as this is amortizable over a period of time for tax purposes.

That is absolutely correct, but I think Coal is simply asking for tips regarding anything peculiar to be aware of when working with a business that is a franchise. Similar to asking if there is anything special about farm returns or what are common deductions for truckers.

I am frequently wrong about what people mean on here. I'll be the first to tell you.

[TaxGuyBill]

These Audit Guides may give you some ideas for what to look for, and what the client may need to know:

http://www.unclefed.com/SurviveIRS/MSSP/mssp_restaurant_and_bar_atg_final.pdf

https://www.irs.gov/businesses/small-businesses-self-employed/cash-intensive-businesses-audit-techniques-guide-chapter-14

https://www.irs.gov/businesses/small-businesses-self-employed/cash-intensive-businesses-audit-techniques-guide-table-of-contents

[RitaB]

Nice post

These Audit Guides may give you some ideas for what to look for, and what the client may need to know:

http://www.unclefed.com/SurviveIRS/MSSP/mssp_restaurant_and_bar_atg_final.pdf

https://www.irs.gov/businesses/small-businesses-self-employed/cash-intensive-businesses-audit-techniques-guide-chapter-14

https://www.irs.gov/businesses/small...le-of-contents

Nice. I never knew what a bodega was till today.

Additionally, my all time favorite, Pub 535 - Business Expenses, talks about Section 197 intangibles like franchise fees in chapter 8.

https://www.irs.gov/publications/p535/index.html

[JohnH]

Nice. I never knew what a bodega was till today.
https://www.irs.gov/publications/p535/index.html

Rita, so you were never a fan of NYPD Blue? Seems like that was a critical location in virtually every episode. Andy and Bobby were always investigating something that either happened down by a bodega or else their key witness worked at a particular bodega.

[RitaB]

I missed it

Rita, so you were never a fan of NYPD Blue? Seems like that was a critical location in virtually every episode. Andy and Bobby were always investigating something that either happened down by a bodega or else their key witness worked at a particular bodega.

I think I was going nuts I mean doing homework with my three kids when it was on. I will have to catch some reruns and I will know what a bodega is now!

[Snaggletooth]

Bodega?

Nice. I never knew what a bodega was till today.

Bodega:

a) Latest dance step. For the next generation after they gave up on the "Macarena."
b) New over-the-counter drug for stuttering.
c) A province in Rhodesia.
d) Next Dwayne Johnson movie about Asteroids.

RitaB never stops with this stuff.

Apologies to "Coal" and hope you will return to the message board. Maybe you are from West Virginia, one of my favorite places to visit.