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Franchise Tax

1,103 Views | 4 Replies | Last: 2 yr ago by whoop1995
Black Tooth Grin
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AG
Does anyone have a problem with the way this tax is applied? I have a retail business and we are subject to the Franchise Tax. It seems like an additional burden that the state applies to Texas businesses whether the margins are great or slim. In this particular retail business the margins are slim.

And the kicker is that after paying this tax for the last 4 years, I find out that I could have applied for an exemption under the new Veteran-owned business definition. So, I guess I am out of that money we paid during that time. Neither my CPA nor I knew about the exemption.
TombstoneTex
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AG
Congratulations on having a business with over $1MM in revenue.
Black Tooth Grin
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AG
Thanks...
combat wombat™
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AG
Black Tooth Grin said:

Does anyone have a problem with the way this tax is applied? I have a retail business and we are subject to the Franchise Tax. It seems like an additional burden that the state applies to Texas businesses whether the margins are great or slim. In this particular retail business the margins are slim.

And the kicker is that after paying this tax for the last 4 years, I find out that I could have applied for an exemption under the new Veteran-owned business definition. So, I guess I am out of that money we paid during that time. Neither my CPA nor I knew about the exemption.


Once you get the exemption you could ask, real nice like, if you could get a refund of some it all of the tax paid the orbits 4 years.
Stat Monitor Repairman
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If you are a veteran in the state of Texas you might be eligible for a franchise tax exemption for a certain number of years.

If that applies to you, look into it.
whoop1995
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AG
I didn't know about the exemption either but when I called I was denied because all members must be a veteran - I formed the business with my wife 50/50 so The business doesn't qualify as she is not a veteran. Also it is only a five year exemption so this is a one time gig and you can't apply again with same business as a renewal.

At least that's what I gleaned from my conversation with them.

You can try and I encourage you to but ducks had better be lined up.
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