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Ohio Commercial Activity Tax (CAT) Services for Franchise Businesses

Ohio's Commercial Activity Tax applies to any business with taxable gross receipts over $150,000 sourced to Ohio, regardless of profitability. For franchise businesses operating in Ohio, CAT filings are quarterly and calculated on total revenue, not profit. We handle registration, gross receipts reporting, quarterly filings, and notice resolution so your CAT obligations are never a gap in your compliance picture.
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Proud to serve businesses across brands like Ace Hardware, NAPA, Bricks & Minifigs, and JETSET Pilates

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Gross receipts taxes can create unexpected reporting obligations

Ohio’s Commercial Activity Tax is one of the most commonly missed compliance obligations for franchise businesses expanding into the state. The CAT applies to any business with Ohio-sourced gross receipts exceeding $150,000 annually — and unlike income tax, it applies to total revenue regardless of whether the business is profitable. The tax is calculated at 0.26% on taxable gross receipts above the exclusion amount, with quarterly filings required for most businesses above the annual threshold. Franchise owners who open an Ohio location without registering for CAT exposure can accumulate unpaid liability across multiple quarters before the Department of Taxation sends a notice.

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Understand how CAT applies to your revenue

CAT calculations are based on gross receipts, meaning revenue reporting must be handled carefully.

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Maintain accurate revenue reporting

Clear financial records help ensure gross receipts are reported correctly.

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Stay organized as your business grows

As revenue increases or operations expand, reporting requirements may change.

A practical approach to Commercial Activity Tax reporting

Managing CAT reporting requires accurate revenue tracking and consistent filings. Our approach focuses on reviewing revenue sources, preparing filings, and maintaining organized reporting processes.

Review your revenue reporting structure

We evaluate how your business tracks and reports gross receipts to ensure they align with CAT requirements.
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Prepare and submit required filings

We assist with preparing and filing CAT returns accurately and on schedule.

Monitor reporting as revenue grows

As your business expands, we help ensure revenue reporting continues to meet CAT requirements.
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Commercial Activity Tax services include

  • CAT Registration Assistance
  • Gross Receipts Reporting Review
  • Commercial Activity Tax Filings
  • Revenue Classification Review
  • CAT Reconciliation Support
  • State Tax Notice Assistance
What to Expect

How Commercial Activity Tax Services Work

#1

Revenue Review

We review your financial records to understand how gross receipts are tracked.
#2

Reporting Evaluation

We evaluate whether revenue classifications align with CAT reporting requirements.
#3

Filing Preparation

We prepare and submit Commercial Activity Tax filings accurately.
#4

Ongoing Monitoring

We monitor reporting requirements as your business grows.
#5

Support for Notices

If questions or notices arise, we assist with resolving them efficiently.
FAQ

Commercial Activity Tax FAQs

What is Commercial Activity Tax (CAT)?
Commercial Activity Tax is a state-level tax based on gross receipts rather than net income.
Businesses with revenue exceeding certain thresholds in applicable states may be required to file CAT returns.
CAT is calculated based on total revenue rather than profit.
Filing frequency depends on revenue thresholds and state requirements.
Because CAT is based on gross receipts, accurate revenue reporting is essential for correct filings.

Stay Organized With Your CAT Reporting

With the right reporting processes in place, Commercial Activity Tax filings can remain accurate and manageable as your business grows.