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Tag: Form 01-117
Texas Franchise Tax vs Sales Tax: Which One Hits You First?
Starting a business in Texas? You’ll likely face two major state-level taxes: the Franchise Tax and the Sales and Use Tax. But which one applies first? Which one costs more? This guide will break down how each tax works, when it kicks in, and what startups, e-commerce sellers, and service providers need to prioritize in […]
Do API Vendors Trigger Collection in Texas?
If your tech startup sells digital goods, software, or services through an API or platform, you may be surprised to learn that Texas classifies some API-driven ecosystems as marketplaces. Under Texas law, marketplace facilitators are responsible for sales tax collection. So do API vendors qualify? Let’s break it down. What Is a Marketplace Facilitator? According […]
$500K Economic Nexus: Remote Seller Threshold for SaaS in Texas
If your SaaS company sells to Texas customers , even without a physical presence in the state , you may be required to register, collect, and remit sales tax. Why? Because Texas enforces a $500,000 economic nexus threshold on remote sellers, including digital and cloud-based platforms. What is Economic Nexus? Economic nexus means a business […]
6.25% Sales Tax on SaaS: What Counts as “Taxable Cloud” in Texas?
Texas imposes 6.25% state sales tax on many cloud-based services , including certain SaaS, IaaS, and PaaS platforms. But not all software is taxable. For startups, AI firms, and SaaS providers, knowing what counts as “taxable cloud” in Texas is critical to stay compliant and avoid audits in 2025. Texas Sales Tax on Software: The […]