How to File TX Franchise Tax | Complete DIY WalkThrough

TL;DR

This video provides an overview of Texas franchise tax, who needs to file, the due date, and how to file it.

Transcript

hello ecommerce sellers this is christine from ledger crews and in today's video i want to walk you through how to file texas franchise tax um before we dive into the details if you haven't please subscribe to our channel and hit the bell sign so you get notified every time we come up with a new video okay so in this video i want to cover what is f... Read More

Key Insights

• 🚕 Texas does not have personal income tax or business corporate tax.
• 🚕 Franchise tax is a margin tax that applies to all businesses involved in the production-to-distribution process in Texas.
• 🚕 The due date for filing Texas franchise tax is usually May 15th, but it has been extended to June 15th for the 2020 tax year.
• 👨‍💼 Exemptions from Texas franchise tax include sole proprietorships, general partnerships, and businesses with sales under $1.18 million nationwide.
• 🚕 Filing Texas franchise tax can be done online through the Texas Comptroller's website.
• 💁 There are three different forms for filing Texas franchise tax: no tax due report, easy computation report, and long form report.
• 💁 The forms require accurate information from the federal income tax return and may require additional deductions and computations.

Questions & Answers

Q: What is the difference between Texas franchise tax and sales tax?

While sales tax is charged to the end consumer, franchise tax applies to all businesses involved in the production-to-distribution process in Texas.

Q: Who needs to file Texas franchise tax?

All businesses that have nexus in Texas, especially remote sellers, are required to file Texas franchise tax.

Q: What is the due date for filing Texas franchise tax?

The usual due date is May 15th, but it has been extended to June 15th for the 2020 tax year.

Q: Are there any exemptions from filing Texas franchise tax?

Sole proprietorships, general partnerships, and businesses with sales under $1.18 million nationwide are exempt from Texas franchise tax.

Summary & Key Takeaways

• Texas does not have a personal income tax or a business corporate tax, but it does have a franchise tax.

• Franchise tax applies to all businesses involved in the process from production to distribution in Texas, regardless of sales tax.

• The due date for filing Texas franchise tax is usually May 15th, but it has been extended to June 15th for the 2020 tax year.