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Section 171.255 - Liability of Director and Officers (a) If the corporate privileges of a corporation are forfeited for the failure to file a report or pay a tax or penalty, each director or officer of the corporation is liable for each debt of the corporation that is created or incurred in this state after the date on ...
Under the Texas Tax Code, Section 171.301?. 3015, the State Comptroller may cause the involuntary forfeiture of an entity for failure to pay its franchise tax. Under Section 171.309, the Texas Secretary of State may also forfeit an entity's charter, certificate, or registration for the same purpose.
171.001. TAX IMPOSED. (a) A franchise tax is imposed on each taxable entity that does business in this state or that is chartered or organized in this state. (b) The tax imposed under this chapter extends to the limits of the United States Constitution and the federal law adopted under the United States Constitution.
If your LLC's annualized total revenue is below $1,230,000, you will be selecting ?yes? for the ?Is the entity's annualized total revenue below the no tax due threshold? question. Or, if your Texas LLC made $0, you can select ?yes? for the ?Does this entity have zero Texas Gross Receipts? question.
To qualify as a passive entity, the entity must be a partnership or trust, other than a business trust, for the entire accounting period on which the tax is based. The entity may not qualify as passive for the accounting period during which the conversion occurs even if it meets the 90 percent income test.
The following entities do not file or pay franchise tax: sole proprietorships (except for single member LLCs); general partnerships when direct ownership is composed entirely of natural persons (except for limited liability partnerships);
Tex. Tax Code Section 171.354. Agent for Service of Process. Each taxable entity on which a tax is imposed by this chapter shall designate a resident of this state as the taxable entity's agent for the service of process.
Current with legislation from the 2023 Regular and Special Sessions effective as of September 1, 2023. Section 171.1012 - Determination of Cost of Goods Sold (a) In this section: (1) "Goods" means real or tangible personal property sold in the ordinary course of business of a taxable entity.