for resale, such as a store purchasing inventory, or they are otherwise exempt
as defined in the Sales and Use Tax law. Sales taxes paid to a state are
generally deductible from Federal Income tax.
If your corporation issues 100,000 shares of stock at $1.00 par value, your net
taxable value is $100,000.00
Your Total assets, minus liabilities, minus stock, = taxable surplus. If this
latter value is a negative value due to operating losses, your taxable value
will remain the same.
Thus in Texas, you can lose money and still owe Franchise taxes each year.
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----- Original Message -----
From: "Dana Tierney" <[EMAIL PROTECTED]>
To: "CF-Community" <[EMAIL PROTECTED]>
Sent: Friday, October 17, 2003 6:51 AM
Subject: Re: Texas corporation question
| ok so... what's this sales and receipts tax, do you know?
|
| and
|
| net taxable capital = bank balance beyond a certain level I guess?
| net taxable earned surplus = adjested gross income kind?
|
| I am comparing NM and TX in case you are wondering
|
| Thank you Doug
| Dana
|
| Doug White writes:
|
| > Texas does not have income taxes either personal or corporate.
| >
| > What they do have, however is called the "Franchinse Tax" which is based on
the
| > amount of capital and surplus.
| >
| > DESCRIPTION:
| > The Texas franchise tax is a privilege tax imposed on each corporation and
| > limited liability company chartered/organized in Texas or doing business in
| > Texas. For franchise tax purposes, the term "corporation" also includes a
bank,
| > state limited banking association, savings and loan association, limited
| > liability company, professional limited liability company, a corporation
that
| > elects to be an S corporation for federal income tax purposes, and a
| > professional corporation.
| >
| > DUE DATE:
| > A corporation's initial report is due one year and 89 days after the
| > corporation's beginning date in Texas. Thereafter, annual reports are due
each
| > May 15.
| >
| > RATE:
| > Greater of .25% (.0025) per year of privilege period of net taxable capital
or
| > 4.5% (.0450) of net taxable earned surplus. For the initial report, the net
| > taxable capital rate is prorated over the initial period. .
| >
| >
| > ----- Original Message -----
| > From: "Dana Tierney" <[EMAIL PROTECTED]>
| > To: "CF-Community" <[EMAIL PROTECTED]>
| > Sent: Friday, October 17, 2003 3:00 AM
| > Subject: Texas corporation question
| >
| >
| > | Anyone know anything about corporate taxes in Texas? I thought there
| > | weren't any but if I am reading the state's website correctly there seem
to
| > | be taxes, though not a corporate income tax per se...
| > |
| > | Dana
| > |
| >
|
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