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Category: Business
Master business taxation with expert tips on compliance, deductions, and strategies to optimize tax planning and reduce liabilities for your business.
Master business taxation with expert tips on compliance, deductions, and strategies to optimize tax planning and reduce liabilities for your business.
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 […]
Zero-Emission Equipment Incentive §171.602: Franchise Tax Credit
Introduction In 2025, Texas is rewarding businesses that invest in clean energy and zero-emission technologies with a valuable franchise tax credit under §171.602. If you’re a manufacturer, warehouse, data center, or logistics startup using electric vehicles, battery storage, or clean HVAC systems, this could reduce your state tax bill significantly. Here’s how the Texas zero-emission […]
Opportunity Zones in Texas: State-Tax Tie-Ins
Introduction Texas has over 600 federally designated Opportunity Zones (OZs) that offer significant capital gains tax deferrals and exclusions. But in 2025, savvy investors and startups are also looking at state-tax tie-ins—especially regarding the Texas Franchise Tax. This guide explains how Opportunity Zone investments benefit from federal programs and what Texas-specific incentives or traps you […]
Sales Tax Holidays: Do SaaS Bundles Qualify?
Introduction Sales-tax holidays are well-known in Texas—back-to-school weekends and energy-efficient product promos—but what about SaaS products bundled with hardware or services? Can software startups benefit in 2025? This blog explores whether SaaS bundles qualify for sales-tax holiday exemptions, the interpretation of bundled transactions, and what Texas sellers must do to comply. Texas Code References Texas […]
Texas Training Grant §151.3185: Refund on Sales Tax Wages
Introduction Training your team in Texas just got more rewarding in 2025. Thanks to Texas Tax Code §151.3185, certain businesses can claim a refund on sales tax paid on wages used to train employees. This little-known incentive is designed to boost workforce development and lower operating costs for tech, manufacturing, and startup employers investing in […]