Dana
Doug White writes:
> 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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