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Tag: Franchise Tax
State Property Tax Abatements for Data Centers (Chapter 312)
Introduction In 2025, Texas continues to lead in attracting data centers with property-tax abatements under Chapter 312. For cloud infrastructure, AI compute farms, and hyperscale storage hubs, this incentive can mean millions in local tax savings. If you’re planning or expanding a data center in Texas, here’s how Chapter 312 abatements work—and how to secure […]
Moratorium on Business Personal Property?
Introduction Business owners in Texas may soon see relief from one of the most controversial local taxes—the Business Personal Property (BPP) tax. In 2025, Texas legislators are considering a moratorium or rollback of the BPP tax. For startups, SaaS firms, and manufacturers with high equipment costs, this could mean major savings. Here’s what you need […]
Texas Comptroller Audits: Top SaaS Margin-Tax Adjustments
Introduction Think Texas doesn’t audit tech startups? Think again. The Texas Comptroller is doubling down on Franchise Tax audits, especially for SaaS companies claiming aggressive cost of goods sold (COGS) or compensation deductions under the Margin Tax. If your business is software-based and relies on recurring revenue, here’s what to know about top adjustments made […]
Letter Rulings on SaaS COGS: 2024–2025 Highlights
Introduction Texas SaaS companies hoping to reduce Franchise Tax via Cost of Goods Sold (COGS) deductions need to be extra cautious. The Texas Comptroller issued several key letter rulings in 2024–2025 that clarify—and restrict—COGS eligibility for software businesses. Let’s break down what was allowed, what was denied, and how you can stay compliant in 2025. […]
Penalty Relief Program: How to Request a Waiver Online
Introduction Missed a Texas Franchise Tax deadline? Filed late or made a payment error? Good news: Texas offers a Penalty Relief Program, and in 2025, you can request waivers entirely online. This guide walks you through the process to reduce or eliminate penalties—especially helpful for small businesses, startups, and growing SaaS firms. Texas Code References […]
Non-Profit Status vs No-Tax-Due: Founder Misconceptions
Introduction Founders often confuse non-profit status with the “no-tax-due” threshold in Texas Franchise Tax. In 2025, assuming your startup pays no tax simply because you’re small—or registered as a non-profit—can lead to costly compliance mistakes. Let’s separate fact from fiction. Key Texas Legal References Texas Tax Code §171.0002(d) – No-tax-due threshold rules Texas Tax Code […]
Public Benefit Corporation in Texas: Same Franchise-Tax?
Introduction Starting a Public Benefit Corporation (PBC) in Texas? You may be surprised to learn that tax-wise, it’s treated just like any for-profit corporation. In this blog, we explore the 2025 franchise tax implications for Texas PBCs and correct the misconception that socially driven businesses pay less. Texas Legal References Texas Business Organizations Code §21.951 […]
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 […]
DAO LLC in Texas: Legal Status & Tax Treatment
DAO LLC in Texas Decentralized Autonomous Organizations (DAOs) structured as Texas LLCs combine blockchain governance with traditional liability protection. Understanding their legal recognition and tax obligations is key to compliance and operational success. Relevant Code & Tax References Texas Business Organizations Code §3.003 defines an LLC as a “legal entity” separate from its members. Texas […]
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 […]