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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 […]
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 […]
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 […]
Dissolving a Texas LLC: Certificate of Termination Step-by-Step
Dissolving a Texas LLC Properly dissolving your Texas LLC protects you from future tax liabilities, fees, or compliance requirements. Filing a Certificate of Termination with the Secretary of State (SOS) and settling final franchise tax obligations are essential steps to formally wind down your entity. Relevant Code References Texas Business Organizations Code §11.056 (Certificate of […]
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 […]
Step-by-Step: Completing the Texas Public Information Report
Texas Public Information Every Texas-taxable entity must file a Public Information Report (PIR) each year, even if no franchise tax is due. The PIR ensures the Comptroller’s office—and the public—has up-to-date ownership and contact information for corporations, LLCs, partnerships, and other entities with Texas nexus. Missing or incomplete PIRs can lead to notices, late-filing fees, […]
New $2.47 M “No-Tax-Due” Threshold Explained (and Who Still Files)
New $2.47 M “No-Tax-Due” Beginning with report years due on or after January 1, 2024, Texas more than doubled its “no-tax-due” threshold—raising it from $1.23 million to $2.47 million. This change, enacted by Senate Bill 3, relieves smaller businesses from owing any franchise tax, but it does not eliminate their filing obligations entirely. In this […]