4 ms·
>> No corporate franchise tax until you make at least $100k, Actually that limit is $1.11m. https://comptroller.texas.gov/taxes/franchise/ https://comptroller
by arbuge 9y ago
>> No corporate franchise tax until you make at least $100k,
Actually that limit is $1.11m.
https://comptroller.texas.gov/taxes/franchise/ https://comptroller.texas.gov/taxes/franchise/
- tyingq 9y agoNote that it's revenue. You still owe franchise tax even if you're losing money.
- njharman 9y agoWhich is good incentive to make some, money that is.
- tyingq 9y agoIt's also an incentive not to incorporate/operate low margin businesses in Texas.
- adventured 9y agoThey have a clause to lessen that problem "Franchise tax is based on a taxable entity’s margin." https://comptroller.texas.gov/taxes/publications/98-806.php https://comptroller.texas.gov/taxes/publications/98-806.php
- tyingq 9y agoIt's a lie though, it is not, especially if you're a services and not a physical product company that can show "COST OF GOODS SOLD". Their definition of margin is not correct.
- code_duck 9y agoI don't think it's intended to account for all expenses. You do have the option of using compensation to cover your costs, though - why would that not be adequate for cost of providing services?
- tyingq 9y agoThere are many flaws. For example, paying 1099 contractors doesn't count as an expense. That's just one. There are others.