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I'm not sure I would recommend Texas either. Use tax means you pay annual taxes on everything you own, plus sales tax on any affiliate deals; franchise tax wil

by redm 14y ago

I'm not sure I would recommend Texas either. Use tax means you pay annual taxes on everything you own, plus sales tax on any affiliate deals; franchise tax will hit you hard even if your not making a dime because it's based on 'net worth' and not on profit. It's a tough place to be.

gyardley 14y ago
The bit about use tax isn't accurate. If you don't pay Texas sales tax on something, which varies from 6.25% to 8.25% depending on the jurisdiction, you are supposed to pay the difference between Texas sales tax and the tax you paid elsewhere. You do this once, not annually. This is not unique to Texas. Use taxes exist in almost every other state, including California and New York. Like everywhere else, use tax is often (usually) completely ignored by taxpayers. After all, it's not like we file a state income tax return down here. No one goes, looks up, and files the individual form for 'use tax'. I don't pay franchise tax in Texas, and I'm not an affiliate marketer - but in my experience it's a rather low-tax jurisdiction with a rather low cost-of-living.
- redm 14y ago
  "The revised franchise tax applies to partnerships (general, limited and limited liability), corporations, LLCs, business trusts, professional associations, business associations, joint ventures, incorporated political committees and other legal entities." So if you aren't one of those then no, you would not pay franchise tax, but most small businesses do.
tarice 14y ago
No state income tax, much cheaper housing costs than the national average, and cheap gas make it a pretty good place to live and work. Plus, because of all that, you can pay your employees much less (than California) and still provide them an equally-good standard of living. And Tex-Mex! I don't see how people in other parts of the country could live without Tex-Mex food.
- redm 14y ago
  That's great if you are making money. If you are loosing money and still paying taxes then it's not so great.
- caniszczyk 14y ago
  I would argue better standard of living.
mimiflynn 14y ago
Everything your business owns? I've never paid a state tax when living in Texas (except for sales taxes), but I don't own land there.
- redm 14y ago
  We are paying taxes on all our assets annually.
  - CamperBob2 14y ago
    Probably a good idea to look for a new CPA, then.

by redm 14y ago

gyardley 14y ago

The bit about use tax isn't accurate. If you don't pay Texas sales tax on something, which varies from 6.25% to 8.25% depending on the jurisdiction, you are supposed to pay the difference between Texas sales tax and the tax you paid elsewhere. You do this once, not annually. This is not unique to Texas. Use taxes exist in almost every other state, including California and New York. Like everywhere else, use tax is often (usually) completely ignored by taxpayers. After all, it's not like we file a state income tax return down here. No one goes, looks up, and files the individual form for 'use tax'. I don't pay franchise tax in Texas, and I'm not an affiliate marketer - but in my experience it's a rather low-tax jurisdiction with a rather low cost-of-living.

redm 14y ago
"The revised franchise tax applies to partnerships (general, limited and limited liability), corporations, LLCs, business trusts, professional associations, business associations, joint ventures, incorporated political committees and other legal entities." So if you aren't one of those then no, you would not pay franchise tax, but most small businesses do.

tarice 14y ago

No state income tax, much cheaper housing costs than the national average, and cheap gas make it a pretty good place to live and work. Plus, because of all that, you can pay your employees much less (than California) and still provide them an equally-good standard of living. And Tex-Mex! I don't see how people in other parts of the country could live without Tex-Mex food.

redm 14y ago
That's great if you are making money. If you are loosing money and still paying taxes then it's not so great.
caniszczyk 14y ago
I would argue better standard of living.

mimiflynn 14y ago

Everything your business owns? I've never paid a state tax when living in Texas (except for sales taxes), but I don't own land there.

redm 14y ago
We are paying taxes on all our assets annually.
- CamperBob2 14y ago
  Probably a good idea to look for a new CPA, then.