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Tag: Texas Tax Code
Texas R&D “Double Weighting” Election: When It Helps
Introduction If your Texas startup invests heavily in R&D, there’s a little-known tax strategy that could cut your franchise tax burden significantly in 2025: the “Double Weighting” Election for research expenses. Texas allows certain taxpayers to double-count qualified R&D expenses in the cost-of-goods-sold (COGS) deduction for margin tax purposes. Let’s break down when and how […]
No Personal Income Tax in Texas: What Founders Still Owe
Introduction Texas doesn’t tax personal income—but that doesn’t mean you owe nothing. Founders often confuse “no state income tax” with “no tax obligations.” In 2025, Texas-based entrepreneurs still face franchise tax, sales tax, local property taxes, and various regulatory fees. Here’s what you need to know to stay compliant while leveraging the Lone Star State’s […]
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 […]
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 […]
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 […]
Secretary of State Forfeiture: Reviving a Texas LLC After Tax Default
Secretary of State Forfeiture If your Texas LLC has been forfeited by the Secretary of State due to unpaid franchise taxes or missing annual reports, you can restore its good standing—and your liability protections—by following a straightforward reinstatement process. Relevant Tax & State Code References Texas Tax Code §171.255 (Forfeiture of Charter or Authority for […]
ACH vs. Credit Card: Cheapest Way to Pay the Texas Comptroller
ACH vs. Credit Card When filing Texas sales tax, franchise tax, or other Comptroller obligations, you can pay electronically via ACH (Automated Clearing House) or by credit card. Choosing the most cost-effective method helps preserve cash flow and reduce fees. IRC & Texas Tax Code References IRC §6302(a) requires taxpayers to timely remit federal tax […]