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LLC / S-Corp in Texas

Discussion in 'Texas' started by hdpt00, Feb 25, 2006.

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  1. hdpt00

    hdpt00 F1 Rookie

    Jul 15, 2005
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    Brandon
    #1 hdpt00, Feb 25, 2006
    Anyone have an LLC or S-Corp? If so, did you register it in Texas, or someone else? From what I've been reading TX charges some nice franchise taxes on your business. I'm moving there in < 2 weeks and need to set up an LLC for one of my businesses as it’s getting too big to be a sole proprietor (protection-wise). I've looked into a NV LLC and it seems there would just be the registered agent fee per year and a one-time fee of $750 to register in TX as a foreign corp.

    Any thoughts or recommendations? Is the franchise tax that much where it is worth the hassle? I'll end up seeing a CPA once I get there, but trying to get some info before I do that.

    Thanks!
     
  2. Schatten

    Schatten F1 World Champ
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    Apr 3, 2001
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    Austin, TX
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    #2 Schatten, Feb 25, 2006
    I cannot recall on franchise tax. It isn't that much from what I can remember. Don't go through an agency. I'll tell you where to go downtown in order for the registration and sales cert if needed. It's only a few hundred bucks, and an additional 25 bucks to expidite it (which can be hours to 3 days tops).
     
  3. WDR328

    WDR328 Formula 3

    Dec 11, 2003
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    #3 WDR328, Feb 26, 2006
    The franchise tax boils down to a state income tax on businesses in Texas. It usually does not amount to much for us, but it burns me up to pay it!
     
  4. Amir

    Amir Formula Junior

    Feb 15, 2003
    687
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    #4 Amir, Feb 26, 2006
  5. hdpt00

    hdpt00 F1 Rookie

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    #5 hdpt00, Feb 26, 2006
    So it seems like it would be worth it to get an LLC in the NV where there is no franchise tax and pay the one-time $750 foreign corp fee?
     
  6. MrScarface

    MrScarface Formula 3
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    Aug 8, 2005
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    #6 MrScarface, Feb 26, 2006
    Don't you need an agent or office in that State? I'm not sure how you would go about that.
     
  7. hdpt00

    hdpt00 F1 Rookie

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    #7 hdpt00, Feb 26, 2006
    Agent is $125/yr.

    @ 2.5% it is not much income where it becomes worth it to inc somewhere else.
     
  8. Brian C. Stradale

    Brian C. Stradale F1 Rookie
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    Mar 17, 2002
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    #8 Brian C. Stradale, Feb 27, 2006
    There are numerous pros & cons; the right answer depends a lot upon how much assets your company has or will have, whether your customers are in-state or out-of-state, and so on. I recommend you get a good TX CPA to help you answer that.

    In my case, I have two companies... one a Texas S-Corp... one a Texas LLC/LP combo setup. In both cases we decided against either Delaware or Nevada options. But its a close call... you'll have to look at the details for your situation.

    Hope that helps,
     

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