Franchise Tax Returns in Round Rock, TX
Texas is one of 13 states with a franchise tax mandate in place (as of 2021). If your business has a tax nexus within the state (location of operation), you may need to pay franchise tax. Perrin Anderson Rastogi Tax Services LLC helps small-to-medium-sized businesses in Round Rock, Austin and Georgetown, TX understand franchise taxes and, if applicable, file for and pay them according.
Do You Owe Franchise Tax?
For new businesses or those with year-over-year growth, it can be difficult to discern whether you owe franchise taxes or not. We work with businesses to first determine their franchise tax responsibility and, if they have one, to understand what that liability looks like. Our team is knowledgeable with the annual thresholds and changes to Texas State franchise taxes, and we’re prepared to help you understand them.
According to the Texas State Comptroller website,
the tax rates, thresholds and deduction limits for 2020 and 2021 are as follows:
- No Tax Due Threshold: $1,180,000
- Tax Rate (retail or wholesale) : 0.375%
- Tax Rate (other than retail or wholesale): 0.75%
- Compensation Deduction Limit: $390,000
- EZ Computation Total Revenue Threshold: $20 million
- EZ Computation Rate: 0.331%
File With Expedience and Accuracy
Like all business taxes, your franchise tax returns need to be filed with expediency. If you’re responsible for paying them, your annual franchise tax report is due May 15. We’ll help you complete and file this report with expedience and accuracy, so you have peace of mind in your standing with state tax entities.