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Category: Tax
Our Tax Experts lets you minimize and manage your tax liabilities considering critical tax factors to plan your taxation and guide you to reduce taxes.
Our Tax Experts lets you minimize and manage your tax liabilities considering critical tax factors to plan your taxation and guide you to reduce taxes.
PTET Copycat? Why Texas Has No Pass-Through Elective Tax
In 30+ U.S. states, pass-through businesses can elect to pay income tax at the entity level to bypass the $10,000 SALT deduction cap. But not in Texas. Why has Texas avoided adopting a PTET regime, and what does that mean for LLCs, S-Corps, and partnerships operating in the state? What is PTET? The Pass-Through Entity […]
Nexus for Out-of-State Investors in Texas Series LLCs
Series LLCs offer flexibility and asset protection, but for non-Texas investors, owning part of a Texas Series LLC could unintentionally trigger Franchise Tax nexus. In 2025, understanding when passive ownership becomes taxable presence is crucial to avoid penalties or unwanted filings. What Is a Series LLC? A Series LLC is a Texas entity structure under […]
Bringing a Delaware Corp to Texas: Franchise-Tax Triggers
Bringing a Delaware Corp to Texas When you register a Delaware C-Corporation to do business in Texas as a foreign entity, understanding Texas franchise-tax triggers helps you anticipate annual filing obligations and associated costs. Proper planning avoids unexpected liabilities. Relevant Code & Tax References Texas Tax Code §171.002(4) defines “doing business” in Texas, including maintaining […]
Creating a Texas Series LLC Operating Agreement (Tax Clauses)
Texas Series LLC Operating Agreement A well-drafted Operating Agreement is vital for a Texas Series LLC to define governance, asset protection, and—critically—tax allocations among the master LLC and its individual series. Including clear tax-related provisions ensures each series maintains its liability shield while complying with federal and state tax requirements. Relevant Code & Tax References […]
ACH vs. Credit Card: Cheapest Way to Pay the Texas Comptroller
ACH vs. Credit Card When filing Texas sales tax, franchise tax, or other Comptroller obligations, you can pay electronically via ACH (Automated Clearing House) or by credit card. Choosing the most cost-effective method helps preserve cash flow and reduce fees. IRC & Texas Tax Code References IRC §6302(a) requires taxpayers to timely remit federal tax […]
Late Texas Franchise-Tax Payment? Interest & Penalty Math
Texas Franchise-Tax Payment Missing the May 15 filing or payment deadline for your Texas franchise-tax can trigger multiple charges: a flat late-filing fee, percentage-based penalties, and accruing interest. Understanding how each is calculated—and how quickly they add up—helps you assess the real cost of a late payment and explore possible waiver options. Applicable Tax Authority […]
Total Revenue vs. Cost-of-Goods: Picking the Best Texas Margin Method
Total Revenue vs. Cost-of-Goods Texas franchise tax is based on a business’s margin, but there are four distinct ways to calculate it. Choosing the method that minimizes your taxable margin can save you thousands. In this post, we’ll compare: Total Revenue × 70% Total Revenue − Cost-of-Goods Sold (COGS) Total Revenue − Compensation Total Revenue […]
Texas Tax Laws: Why Businesses & Individuals Move to the Lone Star State
Introduction Texas has become one of the most popular destinations for businesses and individuals looking to take advantage of its low-tax environment, strong economy, and business-friendly policies. With no state income tax and a relatively simple tax structure, many people and companies are relocating to Texas to maximize financial benefits. This guide explores why Texas […]
What Is the Texas Margins Tax & Who Has to Pay It?
Introduction The Texas Margins Tax, commonly known as the Texas Franchise Tax, is a gross receipts tax applied to businesses operating in Texas. Unlike a traditional income tax, the margins tax is based on a business’s total revenue, with deductions allowed for specific expenses. This guide explains who must pay the tax, how it’s calculated, […]
Tax-Free Weekend in Texas: What Can You Buy Without Paying Sales Tax?
Introduction Every year, Texas offers a Tax-Free Weekend, allowing shoppers to purchase certain items without paying state and local sales tax. This event helps families, students, and businesses save money on essential purchases. This guide explains which items qualify, key dates, spending limits, and strategies to maximize savings. What Is Texas Tax-Free Weekend? Texas Tax-Free […]