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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