So far, services are not taxable in Texas only what is called "Tangible personal
property"

Most corporations doing business in Texas are incorporated in other states, the
most popular being Nevada and Delaware, because of more favorable tax climates.

----- Original Message -----
From: "Dana Tierney" <[EMAIL PROTECTED]>
To: "CF-Community" <[EMAIL PROTECTED]>
Sent: Friday, October 17, 2003 8:10 AM
Subject: Re: Texas corporation question

| duh, you are right, I just went back and looked and that is what they are
| 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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