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Tag: Franchise Tax
Texas Tax Benefits for Online Sellers and E-commerce Entrepreneurs
Texas Tax Benefits for Online Sellers With its no state income tax, robust digital infrastructure, and business-friendly environment, Texas has become a hub for online sellers and e-commerce entrepreneurs. Whether you run an Amazon FBA store, Shopify business, or independent e-commerce brand, understanding Texas tax laws can help you operate efficiently and legally minimize costs. […]
Texas Tax Brackets vs. Federal Tax Brackets: What’s the Difference
Introduction Texas is one of the few U.S. states that does not have a personal income tax. This means that while the federal government taxes income progressively through defined federal tax brackets, Texas residents do not pay any state income tax at all. However, Texans are still subject to other state-level taxes such as sales […]
Do You Have to Pay City Taxes in Texas
Taxes in Texas Texas is well known for having no state income tax, but many residents still wonder whether cities or local governments can impose their own income or payroll taxes. The answer is no. Texas cities cannot levy individual income taxes. However, local governments do collect other types of taxes such as sales tax, […]
Renewable Energy Credits for Texas AI Data Farms
Renewable Energy Credits for Texas Texas AI data farms, powering the surge in artificial intelligence, require massive energy, and renewable sources like solar and wind offer cost-effective, sustainable options amid rising demand. Inexperienced advisors may overlook federal and state incentives, leading to higher operational costs or missed tax savings. Are you claiming renewable energy credits […]
Reinstating a Voided Texas Corporation: Tax Clearance Steps
Reinstating a Voided Texas Corporation Texas corporations that have been voided for failing to meet state requirements, such as filing franchise tax reports or maintaining a registered agent, face significant hurdles to reinstatement, including tax clearance obligations. Inexperienced advisors may overlook critical steps, leading to delays, penalties, or permanent dissolution. Are you prepared to reinstate […]
1099 vs W-2 in Texas: Worker-Classification Penalties
Introduction Texas business owners hiring workers must navigate the critical distinction between independent contractors (1099) and employees (W-2), as misclassification can trigger significant federal and state penalties, inflating tax liabilities and disrupting operations. Inexperienced advisors may misinterpret worker status criteria, leading to costly audits or missed tax benefits. Are you classifying your Texas workers correctly […]
Texas Minimum Wage & Payroll Tax Updates 2025
Introduction Texas business owners face evolving payroll obligations, particularly with federal and state tax updates, even as the state’s minimum wage remains static. Inexperienced advisors may overlook changes in federal payroll taxes or misapply Texas unemployment tax rates, leading to compliance penalties or missed savings. Are you aligning your payroll practices with the latest Texas […]
Understanding SAFE Notes and Texas Margin-Tax Implications
SAFE notes, popularized by Y Combinator, are convertible instruments allowing investors to fund startups in exchange for future equity, typically triggered by a priced round or liquidity event. For federal tax purposes, SAFE notes are often treated as neither debt nor equity until conversion, deferring income recognition under IRC § 1001 until shares are issued. […]
409A Valuations: State-Tax Footnotes VCs Check in Texas
409A Valuations Texas startups and founders issuing stock options must navigate 409A valuations to comply with federal tax rules, but the process also intersects with state tax considerations that venture capitalists (VCs) scrutinize closely. Inexperienced advisors may overlook footnotes in 409A reports highlighting Texas franchise tax implications, potentially raising red flags for investors or leading […]
Gift-Tax Planning With Series LLC Cells in Texas
Introduction Texas founders and high-net-worth individuals frequently utilize gifting strategies to reduce federal estate tax exposure, but without proper structuring, gifts can trigger unnecessary taxes or lose asset protection. Inexperienced advisors may overlook the advantages of series LLC cells for segregating gifted assets, leading to inefficiencies or compliance issues. Are you using series LLCs to […]