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Author: anshul
Gift-Tax Planning With Series LLC Cells in Texas
Introduction Texas founders and high-net-worth individuals frequently utilize gifting strategies to reduce federal estate tax exposure, but without proper structuring, gifts can trigger unnecessary taxes or lose asset protection. Inexperienced advisors may overlook the advantages of series LLC cells for segregating gifted assets, leading to inefficiencies or compliance issues. Are you using series LLCs to […]
83(b) Election for Texas Residents: Margin-Tax Timing
Introduction Texas residents receiving restricted stock or equity grants often overlook the timing implications of an 83(b) election on both federal income tax and Texas franchise tax, potentially leading to unexpected liabilities or missed savings. Inexperienced advisors may fail to coordinate the election with Texas’s margin-tax rules, resulting in inefficient tax outcomes for startups and […]
Estate Planning for TX Founders: No State Estate Tax, But…
Introduction Texas founders and entrepreneurs, building substantial wealth through innovative businesses, often prioritize estate planning to preserve legacies and minimize transfer taxes. While Texas imposes no state estate tax, inexperienced advisors may overlook federal estate tax implications or fail to integrate strategies like trusts and gifting, leading to unnecessary federal liabilities or missed opportunities. Are […]
Terminating a Texas Trust: Final Form 1041 & Franchise-Tax Impact
Introduction Trustees and beneficiaries in Texas often encounter complexities when terminating a trust, including navigating federal tax filings and state franchise tax obligations, where mishandling can result in penalties, delayed distributions, or unexpected tax liabilities. Inexperienced advisors may overlook the need for a final Form 1041 or fail to address Texas franchise tax implications, prolonging […]
Self-Settled Trusts? Why Texas Requires a Third-Party Settlor
Introduction High-net-worth individuals in Texas seeking asset protection often explore self-settled trusts, but the state’s stringent requirements can complicate setup and effectiveness if not handled properly. Inexperienced advisors may fail to emphasize the need for a third-party settlor or trustee, leading to invalid trusts, lost protection, or tax pitfalls. Are you structuring your self-settled trust […]
Trust-Owned Texas LLCs: Asset-Protection & Tax Treatment
Introduction High-net-worth individuals and business owners in Texas often seek robust strategies to protect assets and optimize tax outcomes, but inexperienced advisors may overlook the unique benefits of trust-owned Limited Liability Companies (LLCs), leading to missed opportunities or compliance risks. Are you leveraging trust-owned LLCs to safeguard your wealth while navigating Texas’s franchise tax and […]
Texas Gross Receipts Tax Myths (Hint: It’s the Franchise Tax)
Many founders and out-of-state business owners believe Texas has a gross-receipts tax. While technically false, this myth exists because the Texas Franchise Tax – also known as the margin tax – functions similarly by taxing total revenue with limited deductions. Let’s debunk this and explain what Texas actually taxes in 2025. Is There a Gross-Receipts […]
Throwback Rule? Texas Doesn’t Have One—But Here’s the Catch
Introduction Heard of the “throwback rule” and relieved Texas doesn’t have one? You’re partly right. Texas indeed does not impose a throwback rule, unlike California or New York—but there’s a catch for SaaS and digital businesses. In this 2025 guide, we’ll break down what the throwback rule is, why Texas doesn’t adopt it, and where […]
Texas R&D “Double Weighting” Election: When It Helps
Introduction If your Texas startup invests heavily in R&D, there’s a little-known tax strategy that could cut your franchise tax burden significantly in 2025: the “Double Weighting” Election for research expenses. Texas allows certain taxpayers to double-count qualified R&D expenses in the cost-of-goods-sold (COGS) deduction for margin tax purposes. Let’s break down when and how […]
Film, Game & Animation Tax Incentives in Texas
Introduction Lights, camera, tax credits! In 2025, Texas is offering generous incentives to filmmakers, gaming studios, and animation houses that produce content in-state. The goal? Keep creative industries in Texas while rewarding job creation and local spending. If you’re running a game dev studio, VFX company, or indie film project, these credits could significantly reduce […]