talking about, tax on goods sold. But web development isnt taxable is it?
In any case I think that if franchise tax is 4.5% then I am actually better
off incorporating in New Mexico, which I find surprising... as an S
corporation I would pay 5% of profit I think, and there are oodles and
oodles of incentives to incorporate here....
Dana
Doug White writes:
> Sales tax applies to everyone, who purchases products in Texas unless purchased
> 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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