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Tag: Franchise tax Texas
Arm’s-Length for Margin Tax Purposes in Texas
If you operate multiple business entities , especially across states or internationally , and charge management fees between them, Texas wants to ensure these are arm’s-length and not being used to reduce Franchise Tax improperly. Here’s how to structure intercompany fees to withstand scrutiny from the Texas Comptroller in 2025. What Are Intercompany Management Fees? […]
Foreign-Owned Texas SMLLC: Form 5472 and Franchise-Tax Issues
If you’re a non-U.S. person owning a Single-Member LLC (SMLLC) in Texas, you have two compliance fronts: IRS reporting under Form 5472 and Texas Franchise Tax requirements. Missing either can lead to steep penalties or business forfeiture. Here’s what every foreign owner needs to know in 2025. What is a Foreign-Owned SMLLC? A foreign-owned SMLLC […]
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, […]
Texas Homestead Exemption: How Homeowners Can Save on Property Taxes
Introduction Texas homeowners can significantly reduce their property tax bills by applying for a homestead exemption. This exemption lowers the taxable value of a home, which results in lower annual property taxes. This guide explains who qualifies for a Texas homestead exemption, how to apply, and how much homeowners can save. What Is a Texas […]
Texas Has No State Income Tax – But What Are the Hidden Costs?
Introduction Texas is one of the few states in the U.S. that does not impose a state income tax. This makes it an attractive option for individuals and businesses looking to maximize their earnings. However, while Texas offers significant tax benefits, there are hidden costs that residents and business owners should consider before moving. This […]
Best Tax Deductions & Credits Available for Texas Small Business Owners
Introduction Texas small business owners can take advantage of various tax deductions and credits to reduce their tax liability. While Texas does not have a state income tax, businesses are still subject to federal taxes and state-level franchise tax. This guide explains the top tax deductions and credits available to Texas business owners, how to […]
How to File Your Texas Sales Tax Return Online (Step-by-Step Guide)
Introduction Businesses in Texas that sell taxable goods or services must collect and remit sales tax to the state. The Texas Comptroller’s Office requires businesses to file sales tax returns either monthly, quarterly, or annually, depending on revenue. Filing your Texas sales tax return online is the fastest and most efficient method to stay compliant […]
Best Tax Deductions for Small Business Owners in Texas
Introduction Running a small business in Texas comes with several tax advantages, including no state income tax and various deductions that reduce taxable income. Knowing which deductions you qualify for can help you lower your tax bill and maximize profits. This guide outlines the top tax deductions available to Texas small business owners, how to […]