What is the Texas Franchise Tax?

The Texas franchise tax is a "privilege tax" levied on companies doing business in Texas. Liability protections provided by state law are part of this privilege. The Texas Comptroller of Public Accounts is in charge of the franchise tax collections.

All Texas LLCs must file a Franchise Tax Report, regardless of activity, revenue, or how they are taxed by the IRS. We can help you file your franchise tax at NoTaxDue.US or Swahilifinance.com

These entities include:

• Corporations;

• Limited Liability Companies (LLCs), including series LLCs;

• Banks;

• State Limited Banking Associations;

• Savings and Loan Associations;

• S Corporations;

• Professional Corporations;

• Partnerships (general, limited and limited liability);

• Trusts;

• Professional Associations;

• Business Associations;

• Joint Ventures; and

• Other legal entities.

Here is a list of some activities considered to be “doing business in Texas” if you are still unsure whether you will have to file this report:

Advertising: entering Texas to purchase, place, or display advertising when the advertising is for the benefit of another and in the ordinary course of business (e.g., the foreign taxable entity makes signs and brings them into Texas, sets them up, and maintains them);

Consignments: having consigned goods in Texas;

Contracting: performance of a contract in Texas regardless of whether the taxable entity brings its own employees into the state, hires local labor, or subcontracts with another;

Delivering: delivering into Texas items it has sold;

Employees or representatives: having employees or representatives in Texas doing the business of the taxable entity;

Federal enclaves: doing business in any area within Texas, even if the area is leased by, owned by, ceded to, or under the control of the federal government;

Franchisors: entering into one or more contracts with persons, corporations, or other business entities located in Texas, by which:

Holding companies: maintaining a place of business in Texas or managing, directing, and/or performing services in Texas for subsidiaries or investee entities;

Inventory: having an inventory in Texas or having spot inventory for the convenient delivery to customers, even if the bulk of orders are filled from out of state;

Leasing: leasing tangible personal property which is used in Texas;

Loan production activities: soliciting sales contracts or loans, gathering financial data, making credit checks, collecting accounts, repossessing property or performing other financial activities in Texas through employees, independent contractors, or agents, regardless of whether they reside in Texas;

Partners:

o Acting as a general partner in a general partnership that is doing business in Texas;

o Acting as a general partner in a limited partnership that is doing business in Texas (a foreign taxable entity that is a limited partner in a limited partnership does not have physical presence in Texas, if that is the limited partner's only connection with Texas);

Place of business: maintaining a place of business in Texas

Processing: assembling, processing, manufacturing, or storing goods in Texas;

Real estate: holding, acquiring, leasing, or disposing of any property located in Texas;

Services, including, but not limited to the following:

o Providing any service in Texas, regardless of whether the employees, independent contractors, agents, or other representatives performing the services reside in Texas;

o Maintaining or repairing property located in Texas whether under warranty or by separate contract;

o Installing, erecting, or modifying property in Texas;

o Conducting training classes, seminars or lectures in Texas;

o Providing any kind of technical assistance in Texas, including, but not limited to, engineering services; or

o Investigating, handling or otherwise assisting in resolving customer complaints in Texas.

Shipment: sending materials to Texas to be stored awaiting orders for their shipment;

Shows and performances: the staging of or participating in shows, theatrical performances, sporting events, or other events within Texas;

Solicitation: having employees, independent contractors, agents, or other representatives in Texas, regardless of whether they reside in Texas, to promote or induce sales of the foreign taxable entity's goods or services;

Telephone listing: having a telephone number that is answered in Texas; or

Transportation

Visit our website swahilifinance.com to file your franchise taxes today!