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Tag: Form 05-158
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 […]
Series LLCs in Texas: One Return or Many?
Series LLCs in Texas Texas Series LLCs allow asset segregation into “series” under a master LLC, simplifying formations and liability shields. A common question is whether each series must file its own Texas franchise-tax report or if the master LLC can file just one consolidated return. Relevant Tax & Code References Texas Tax Code §171.101 […]
Final Franchise-Tax Filings When You Close a Texas LLC
Final Franchise-Tax Filings When closing your Texas LLC, the final franchise-tax filing is critical to avoid penalties, interest, or future liens. This “final report” notifies the Comptroller that your business has ceased operations and ensures no outstanding tax liabilities remain. Relevant Tax Code References Texas Tax Code §171.255(d) requires a final franchise-tax report and payment […]
Annualized Revenue Test: Avoiding a Surprise Texas Tax Bill
Annualized Revenue Test If your Texas franchise-tax reporting period isn’t a full 12 months—because you formed or acquired the business mid-year, changed your fiscal year, or operate on a short tax period—you must annualize your total revenue to determine: Whether you fall under the $2.47 million no-tax-due threshold, and Whether you qualify for the E-Z […]
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 Franchise Tax: What Founders Must File by May 15v
Introduction Texas imposes a franchise tax on most entities “doing business” in the state. Under Texas Tax Code §171.002, any corporation, LLC, or other taxable entity with revenue above the no-tax-due threshold must file an annual franchise tax report and Public Information Report by May 15, 2025. Founders should understand what forms are required, how […]