After successfully registered in Texas, the Corporation or LLC are required to operate in compliance with the Business Corporation Law/Limited Liability Company Law of the State of Texas. The following describes the Texas company’s basic maintenance requirements.
Texas law requires that every business entity must have and maintain a Registered Agent in the State of Texas who may be either an individual resident or business entity that is authorized to do business in the State of Texas. The registered agent must have a physical street address in Texas.
All Corporation and LLCs registered at Texas are required to file Annual Reports, including the Public Information Report and Franchise Tax Report. The annual reports are due May 15. If May 15 falls on a weekend or holiday, the due date will be the next business day. The Public Information Report includes the most current names and addresses information of all the board directors. The Franchise Tax Report must be filed with Comptroller of Public Accounts, even without any tax due. Franchise tax rates, thresholds and deduction limits vary by report year. Please refer to the following table for year 2020 and 2021.
Year 2020 and
2021
Item
Amount
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
In addition to Franchise Tax, according to Federal and State tax rules, all active business registered in Texas must file tax returns on time, including business income tax, sales tax, payroll tax and other relevant taxes returns. Please note, Texas state does not impose income taxes on business entities.
According to Internal Revenue Code, the payments that certain foreign persons receive from U.S. sources, are subject to tax withholding. And they must report the amount withheld to IRS, if any. If a business entity in US held bank or financial account out of US, the entity maybe required to file FBAR with Department of Treasury, or FATCA related forms with IRS.
As discussed above, all active Texas Corporations and LLCs are required to operate in compliance with the Texas business laws. You are also required to maintain and update the accounting books in accordance with the tax and business law. The business entities may also need to apply for the license and permits with state according to different industries. Kaizen U.S. office is a professional CPA firm, offers complete compliance services and business support, such as bookkeeping, filing tax return, making payroll, etc.
All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.
A business asset refers to a valuable item owned by a company, including a wide range of categories like physical, tangible goods, such as vehicles and real estate, as well as intangible items. The U.S. tax code sections 1231, 1245, 1250, and capital assets primarily cover most of business assets. This article will provide a brief overview of the capital assets.
Sections 1231, 1245, and 1250 of the United States Internal Revenue Code pertain to the tax treatment of gains and losses on the sale or disposition of certain types of property. This article will discuss the different types of business assets covered and depreciation of U.S. business assets.
In addition to the four employee benefits previously discussed, it is essential to consider a fifth benefit: health insurance, which represents the most significant expense associated with employee benefits in contemporary workplaces. The Affordable Care Act (ACA) stipulates that organizations employing 50 or more full-time employees are subject to a tax penalty unless they provide adequate healthcare coverage that complies with ACA standards for their full-time workforce.
It is also advisable for employees to engage in a comprehensive dialogue with prospective candidates regarding the company's benefits package prior to joining the organization. It should be noted that the provision of employee benefits is not a mandatory requirement. However, there are five notable exceptions where such provisions are legally binding: Social Security
