Franchise Tax

In Texas, most businesses are subject to an annual franchise tax—a state tax for the privilege of doing business here. Even if your business made no profit during the year, you may still be required to file.

At Dallas Tax Hub, we help businesses in Lewisville, Texas calculate, file, and pay their franchise tax correctly and on time—so you avoid penalties, interest, and compliance issues with the Texas Comptroller of Public Accounts.

What is the Texas Franchise Tax?

The Texas franchise tax is not based on profit—it’s calculated on a business’s margin (revenue minus certain deductions). This means even if you had a loss for the year, you may still owe a filing.

Who Must File?

• Corporations (C corps & S corps)

• Limited Liability Companies (LLCs)

• Partnerships

• Professional Associations

• Certain other entities registered to do business in Texas

Key Texas Franchise Tax Facts

• Tax Rate (2025):

  • 0.375% for qualifying retailers and wholesalers

  • 0.75% for all other businesses

• No-Tax-Due Threshold: Entities with annualized total revenue of $2.47 million or less pay no tax, but must still file.

• Due Date: Generally May 15 each year (or next business day if it falls on a weekend or holiday).

• Penalty for Late Filing:

  • 5% of tax due if filed 1–30 days late

  • 10% if more than 30 days late

  • Additional interest for unpaid amounts

Our Franchise Tax Services Include:

1. Entity Classification Review

   • Confirming your business type and filing obligations with the Texas Comptroller.

2. Revenue & Margin Calculations

   • Determining your correct margin using one of four allowable methods under Texas law.

3. No-Tax-Due Filings

   • Preparing and filing your report even if you fall under the no-tax-due threshold.

4. Complete Franchise Tax Report Preparation

   • Gathering and organizing all required financial data.

   • Preparing and filing the Annual Franchise Tax Report online.

5. Extensions & Estimated Payments

   • Applying for extensions if needed and calculating any estimated tax due.

6. Audit Support

   • Assisting with Texas Comptroller inquiries or franchise tax audits.

Why Franchise Tax Compliance is Important

Failing to file your Texas franchise tax report can lead to:

• Loss of good standing with the Texas Secretary of State

• Inability to legally conduct business in Texas

• Accumulated penalties and interest

• Administrative forfeiture of your entity

By trusting Dallas Tax Hub, you ensure your business stays compliant and in good standing every year.

Why Lewisville Businesses Choose Dallas Tax Hub

✅ Texas Tax Experts – We understand the Texas Comptroller’s rules inside and out.
✅ Deadline Protection – On-time filings to avoid penalties and compliance issues.
✅ All-in-One Service – Bookkeeping, tax preparation, and franchise tax compliance under one roof.
✅ Local Support – Real people in Lewisville ready to help you year-round.