The Texas Business Tax
How Much is the Franchise Tax?
The tax rate depends on the company’s size and revenue:
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Businesses with gross revenue under $1.23 million: Exempt from the Franchise Tax.
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Businesses with gross revenue between $1.23 million and $20 million: Pay a rate of 0.375% on gross margins.
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Businesses with gross revenue over $20 million: Pay a rate of 0.75%.
How to Calculate the Franchise Tax
Companies can calculate their gross margins using one of three methods:
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Total revenue minus the cost of goods sold (COGS).
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Total revenue minus employee compensation (up to a limit).
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Total revenue minus 30%.
This flexibility allows businesses to optimize their tax burden based on their cost structure.
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North Carolina
North Carolina’s tax landscape encompasses a diverse range of levies, including corporate income tax, franchise tax, and sales tax. Understanding the intricacies of the state’s tax system is crucial for businesses and individuals alike. The corporate income tax rate, currently at 2.5%, is set to undergo phased reductions, ultimately reaching 0% by 2030. Alongside this, corporations operating in the state are subject to a minimum Franchise Tax of $200. Compliance with tax return deadlines, nexus considerations for income tax, and the availability of various tax credits are essential aspects for businesses navigating North Carolina’s tax environment.
Tennessee
Florida
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Business tax rate: 6.5% for both corporations and limited liability entities.
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Sales tax rate: 7.00%.
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Franchise tax: Applied based on the higher value between net worth and the book value of real and tangible personal property in the state.
Florida corporate income/franchise tax is computed using federal taxable income, modified by certain Florida adjustments, additions, and subtractions, to determine adjusted federal income.
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A corporation doing business outside Florida may apportion its total income. Adjusted federal income is usually apportioned to Florida using a three-factor formula. The formula is a weighted average, designating 25% each to factors for property and payroll, and 50% to sales.
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You should add non-business income allocated to Florida to the Florida portion of adjusted federal income.
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You should then subtract an exemption ($50,000 as of December 31, 2015) to arrive at Florida net income.
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Finally, you should compute tax by multiplying Florida net income by the appropriate tax rate based on the following:
Taxable Year Beginning Prior to 1/1/20191/1/2019 - 12/31/20201/1/2021 - 12/31/2021On or After 1/1/2022
Tax Rate5.5%4.458%3.535%5.5%
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Georgia
Dallas, Texas
Contact us for a complete business tax and labor profile on any specific location of interest.
LaMacchia Berkshire Development, LLC
Homexoom Real Estate, LLC
CORP VELOCITY
Corp Velocity, LLC
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Sales and Client Services
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