{ "batch": "176-texas-business-and-tax-for-creators", "articles": [ { "id": "learn_r176_texas_business_and_tax_for_creators_tx_anchor_comptroller_sos", "category": "Business", "title": "Texas state agencies governing creator business taxation and registration", "summary": "Texas creator business compliance is handled by two state agencies: the Comptroller of Public Accounts, which administers the sales and use tax permit, sales tax, franchise tax and the annual Public Information Report, and the Secretary of State, which handles business entity formation (LLC certificate of formation), assumed name (DBA) filings and name availability for Texas entities.", "body": "Texas creator business compliance is handled by two state agencies: the Comptroller of Public Accounts, which administers the sales and use tax permit, sales tax, franchise tax and the annual Public Information Report, and the Secretary of State, which handles business entity formation (LLC certificate of formation), assumed name (DBA) filings and name availability for Texas entities.\n\nWhat Texas Comptroller of Public Accounts actually says:\n\n“The Texas Comptroller's office serves the state by collecting, processing, administering, or overseeing 100 separate taxes, fees, assessments, and program applications, including local sales taxes collected on behalf of more than 1,800 Texas cities, counties, and other local governments.”\n\nNote: Anchor record identifying the two Texas state agencies responsible for creator business taxation and registration. Secretary of State handles entity formation and assumed names; Comptroller administers sales and franchise tax.", "source_type": "official", "source_link": "https://comptroller.texas.gov/taxes/", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Comptroller of Public Accounts", "evidence_quote": "The Texas Comptroller's office serves the state by collecting, processing, administering, or overseeing 100 separate taxes, fees, assessments, and program applications, including local sales taxes collected on behalf of more than 1,800 Texas cities, counties, and other local governments.", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Texas Comptroller of Public Accounts and Texas Secretary of State", "topic": "Texas state agencies governing creator business taxation and registration", "applies_to_country": "US", "applies_to_scope": "Texas-specific state agencies", "tags": { "lane": "any", "stage": "any", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.tax", "access.signup" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_income_no_personal_income_tax", "category": "Business", "title": "Whether Texas levies a state personal income tax", "summary": "I searched for a state personal income tax in the official index of every tax and fee the Texas Comptroller of Public Accounts administers (comptroller.texas.gov/taxes/, read 2026-09-12). The index, reproduced in the evidence quote, lists all Texas state taxes and fees - sales and use, franchise, hotel, motor fuels, tobacco, motor vehicle, mixed beverage, property and others - but contains no personal income tax. I trust this result because the Comptroller is the agency statutorily responsible for collecting all Texas state taxes and publishes the authoritative list of the taxes it administers.", "body": "I searched for a state personal income tax in the official index of every tax and fee the Texas Comptroller of Public Accounts administers (comptroller.texas.gov/taxes/, read 2026-09-12). The index, reproduced in the evidence quote, lists all Texas state taxes and fees - sales and use, franchise, hotel, motor fuels, tobacco, motor vehicle, mixed beverage, property and others - but contains no personal income tax. I trust this result because the Comptroller is the agency statutorily responsible for collecting all Texas state taxes and publishes the authoritative list of the taxes it administers.\n\nWhat Texas Comptroller of Public Accounts actually says:\n\n“9-1-1 Fees and Surcharge / Automotive Oil Sales Fee / Battery Sales Fee / Boat and Boat Motor / Cement Production / Coastal Protection / Coin-Operated Machines Tax / Crude Oil / Franchise / Hotel / Insurance Taxes, Assessments and Fees / Loan Administration Fee / Manufactured Housing / Miscellaneous Gross Receipts / Mixed Beverage Taxes / Motor Fuels, IFTA and Interstate Truckers / Motor Vehicle Taxes / Natural Gas / Oil and Gas Well Servicing / Oyster Sales Fee / Pari-Mutuel / Property Tax / Public Utility Gross Receipts Assessment / Sales and Use / Sexually Oriented Business Fee / Texas Emissions Reduction Plan (TERP) - Off Road Heavy Duty Diesel Equipment Surcharge / Tobacco, Cigarette and E-Cigarette Taxes and Fees”\n\nNote: Absence record. I searched the Comptroller's official 'All Taxes and Fees' index on 2026-09-12 for an income tax; none appears in the administered-tax list, which is the authoritative enumeration of Texas state taxes. Federal income tax still applies (see federal batch). Confidence is 'contested' as required for absence records.", "source_type": "official", "source_link": "https://comptroller.texas.gov/taxes/", "last_verified": "2026-09-12", "reliability": "CREATOR STRATEGY", "source_tier": "A", "source_publisher": "Texas Comptroller of Public Accounts", "evidence_quote": "9-1-1 Fees and Surcharge / Automotive Oil Sales Fee / Battery Sales Fee / Boat and Boat Motor / Cement Production / Coastal Protection / Coin-Operated Machines Tax / Crude Oil / Franchise / Hotel / Insurance Taxes, Assessments and Fees / Loan Administration Fee / Manufactured Housing / Miscellaneous Gross Receipts / Mixed Beverage Taxes / Motor Fuels, IFTA and Interstate Truckers / Motor Vehicle Taxes / Natural Gas / Oil and Gas Well Servicing / Oyster Sales Fee / Pari-Mutuel / Property Tax / Public Utility Gross Receipts Assessment / Sales and Use / Sexually Oriented Business Fee / Texas Emissions Reduction Plan (TERP) - Off Road Heavy Duty Diesel Equipment Surcharge / Tobacco, Cigarette and E-Cigarette Taxes and Fees", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Texas state personal income tax on self-employment income", "topic": "Whether Texas levies a state personal income tax", "applies_to_country": "US", "applies_to_scope": "Texas state taxes administered by the Texas Comptroller of Public Accounts", "tags": { "lane": "any", "stage": "running", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.tax" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_sales_permit_required", "category": "Business", "title": "When a creator selling taxable items in Texas must hold a sales tax permit", "summary": "If you are in Texas and sell taxable items (including taxable services, data processing, information services and digital goods), you must have a Texas sales and use tax permit unless your sales qualify as occasional sales. The permit is free; you may be required to post a security bond. Fair warning: the Comptroller may cancel the permit if you are not actively engaged in business as a seller, and a new permit is required on any change of ownership (for example, incorporating or forming an LLC).", "body": "If you are in Texas and sell taxable items (including taxable services, data processing, information services and digital goods), you must have a Texas sales and use tax permit unless your sales qualify as occasional sales. The permit is free; you may be required to post a security bond. Fair warning: the Comptroller may cancel the permit if you are not actively engaged in business as a seller, and a new permit is required on any change of ownership (for example, incorporating or forming an LLC).\n\nWhat Texas Comptroller of Public Accounts actually says:\n\n“If you are in Texas and sell taxable items, you must have a Texas sales tax permit – unless your sales qualify as occasional sales.”\n\nNote: Publication 94-171 (11/2020). The same permitting FAQ confirms 'There is no fee for the permit, but you may be required to post a security bond' and that a new permit is required on ownership changes. Apply via the Texas Online Sales Tax Registration Application or Form AP-201.", "source_type": "official", "source_link": "https://comptroller.texas.gov/taxes/publications/94-171.php", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Comptroller of Public Accounts", "evidence_quote": "If you are in Texas and sell taxable items, you must have a Texas sales tax permit – unless your sales qualify as occasional sales.", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Texas sales and use tax permit requirement for sellers", "topic": "When a creator selling taxable items in Texas must hold a sales tax permit", "applies_to_country": "US", "applies_to_scope": "Texas sales and use tax permit requirement", "tags": { "lane": "any", "stage": "setting_up", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.tax", "access.signup" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_sales_data_processing_taxable", "category": "Business", "title": "Whether software subscriptions, SaaS and data processing services sold by creators are taxable in Texas", "summary": "Digital/data services sold by creators are generally taxable in Texas: using a computer for word processing, data entry, production, compilation, storage or manipulation is a taxable data processing service, and providers of these services include sellers of software as a service (SaaS) and application service providers. Twenty percent of the charge for data processing services is exempt from tax.", "body": "Digital/data services sold by creators are generally taxable in Texas: using a computer for word processing, data entry, production, compilation, storage or manipulation is a taxable data processing service, and providers of these services include sellers of software as a service (SaaS) and application service providers. Twenty percent of the charge for data processing services is exempt from tax.\n\nWhat Texas Comptroller of Public Accounts actually says:\n\n“Using a computer for word processing, data entry, production, compilation, storage or manipulation is a taxable data processing service. Twenty percent of the charge for data processing services is exempt from tax.”\n\nNote: Publication 96-259 Taxable Services (01/2026). The same section adds 'Data processing services providers include sellers of software as a service and application service providers.' A seller needs a sales tax permit to sell these taxable services.", "source_type": "official", "source_link": "https://comptroller.texas.gov/taxes/publications/96-259.php", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Comptroller of Public Accounts", "evidence_quote": "Using a computer for word processing, data entry, production, compilation, storage or manipulation is a taxable data processing service. Twenty percent of the charge for data processing services is exempt from tax.", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Taxability of data processing services including SaaS and web hosting", "topic": "Whether software subscriptions, SaaS and data processing services sold by creators are taxable in Texas", "applies_to_country": "US", "applies_to_scope": "Texas sales and use tax on data processing services (Tax Code 151.0101)", "tags": { "lane": "any", "stage": "running", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.tax" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_sales_info_services_taxable", "category": "Business", "title": "Whether subscription-style digital/information services creators sell are taxable in Texas", "summary": "Gathering and furnishing general or specialized news or other current information to others - including electronic data research or retrieval and providing access to databases - is a taxable information service in Texas. Twenty percent of the charge for information services is exempt from tax. Taxable examples include database subscriptions, newsletters, scouting reports and surveys, financial market reports, data retrieval and research, mailing lists and GPS information.", "body": "Gathering and furnishing general or specialized news or other current information to others - including electronic data research or retrieval and providing access to databases - is a taxable information service in Texas. Twenty percent of the charge for information services is exempt from tax. Taxable examples include database subscriptions, newsletters, scouting reports and surveys, financial market reports, data retrieval and research, mailing lists and GPS information.\n\nWhat Texas Comptroller of Public Accounts actually says:\n\n“Gathering and furnishing general or specialized news or other current information to others, including electronic data research or retrieval and providing access to databases of such information are information services. Twenty percent of the charge for information services is exempt from tax.”\n\nNote: Publication 96-259 Taxable Services (01/2026). This is the category that makes subscription-based digital content (newsletters, database access) taxable in Texas. Internet access service was removed from taxable services effective July 1, 2020 and again under SB 1405 effective July 1, 2025, but content subscriptions remain taxable.", "source_type": "official", "source_link": "https://comptroller.texas.gov/taxes/publications/96-259.php", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Comptroller of Public Accounts", "evidence_quote": "Gathering and furnishing general or specialized news or other current information to others, including electronic data research or retrieval and providing access to databases of such information are information services. Twenty percent of the charge for information services is exempt from tax.", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Taxability of information services such as database subscriptions and newsletters", "topic": "Whether subscription-style digital/information services creators sell are taxable in Texas", "applies_to_country": "US", "applies_to_scope": "Texas sales and use tax on information services (Tax Code 151.0101)", "tags": { "lane": "any", "stage": "running", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.tax" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_sales_combined_rate", "category": "Business", "title": "Texas sales and use tax rate on physical goods and taxable services", "summary": "The Texas state sales and use tax rate is 6.25 percent, and local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can add up to 2.00 percent, for a maximum combined rate of 8.25 percent. The local rate depends on the purchaser's location or the shipping destination.", "body": "The Texas state sales and use tax rate is 6.25 percent, and local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can add up to 2.00 percent, for a maximum combined rate of 8.25 percent. The local rate depends on the purchaser's location or the shipping destination.\n\nWhat Texas Comptroller of Public Accounts actually says:\n\n“The state sales and use tax rate is 6.25 percent and the local sales and use tax cannot be more than 2 percent.”\n\nNote: Publication 94-171 (11/2020). Verify the rate for an address with the Comptroller's Sales Tax Rate Locator, since the local component varies by location.", "source_type": "official", "source_link": "https://comptroller.texas.gov/taxes/publications/94-171.php", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Comptroller of Public Accounts", "evidence_quote": "The state sales and use tax rate is 6.25 percent and the local sales and use tax cannot be more than 2 percent.", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Texas combined state and local sales tax rate", "topic": "Texas sales and use tax rate on physical goods and taxable services", "applies_to_country": "US", "applies_to_scope": "Texas sales and use tax rates", "tags": { "lane": "any", "stage": "running", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.tax" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_sales_collect_online_shipping", "category": "Business", "title": "Whether Texas sellers must charge and collect sales tax on online sales, shipping and delivery charges", "summary": "Texas sellers must collect sales tax on taxable items, including shipping and delivery charges, sold online to customers in Texas, using the rate for the seller's business location plus any additional local use tax due at the shipping destination. Texas sellers do not need to collect Texas sales tax on items shipped and delivered to locations outside Texas.", "body": "Texas sellers must collect sales tax on taxable items, including shipping and delivery charges, sold online to customers in Texas, using the rate for the seller's business location plus any additional local use tax due at the shipping destination. Texas sellers do not need to collect Texas sales tax on items shipped and delivered to locations outside Texas.\n\nWhat Texas Comptroller of Public Accounts actually says:\n\n“Texas sellers must collect sales tax on taxable items, including shipping and delivery charges, sold online in Texas.”\n\nNote: Publication 94-171 (11/2020). The companion rule in the same publication: 'Texas sellers do not need to collect Texas sales tax on items shipped and delivered to out-of-state locations.' Keep proof of delivery for documentation.", "source_type": "official", "source_link": "https://comptroller.texas.gov/taxes/publications/94-171.php", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Comptroller of Public Accounts", "evidence_quote": "Texas sellers must collect sales tax on taxable items, including shipping and delivery charges, sold online in Texas.", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Texas sellers collecting sales tax on online sales including shipping", "topic": "Whether Texas sellers must charge and collect sales tax on online sales, shipping and delivery charges", "applies_to_country": "US", "applies_to_scope": "Texas sales and use tax collection by Texas sellers", "tags": { "lane": "any", "stage": "running", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.tax", "ops.shipping" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_sales_remote_seller_threshold", "category": "Business", "title": "When an out-of-state creator selling into Texas must hold a Texas permit", "summary": "An out-of-state business that sells or leases tangible personal property or taxable services to customers in Texas must obtain a Texas sales and use tax permit if it has revenue from Texas of $500,000 or more in the past 12 months. Creators without physical presence in Texas who exceed the Texas revenue threshold therefore need the Texas permit and must collect and remit Texas tax.", "body": "An out-of-state business that sells or leases tangible personal property or taxable services to customers in Texas must obtain a Texas sales and use tax permit if it has revenue from Texas of $500,000 or more in the past 12 months. Creators without physical presence in Texas who exceed the Texas revenue threshold therefore need the Texas permit and must collect and remit Texas tax.\n\nWhat Texas Comptroller of Public Accounts actually says:\n\n“Sell or lease tangible personal property or taxable services to customers in Texas from an out-of-state business and have revenue from Texas of $500,000 or more in the past 12 months.”\n\nNote: Sales and Use Tax FAQ - Obtaining a Sales Tax Permit section, answer to 'Who is required to hold a Texas sales and use tax permit?' A creator is 'engaged in business' in Texas if they have a location, an employee/representative in Texas, perform services in Texas, or otherwise conduct business there.", "source_type": "official", "source_link": "https://comptroller.texas.gov/taxes/sales/faq/permit.php", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Comptroller of Public Accounts", "evidence_quote": "Sell or lease tangible personal property or taxable services to customers in Texas from an out-of-state business and have revenue from Texas of $500,000 or more in the past 12 months.", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Outside-Texas sellers who must obtain a Texas sales tax permit", "topic": "When an out-of-state creator selling into Texas must hold a Texas permit", "applies_to_country": "US", "applies_to_scope": "Texas sales and use tax remote seller threshold", "tags": { "lane": "any", "stage": "setting_up", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.tax", "access.signup" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_franchise_report_due_may15", "category": "Business", "title": "Annual franchise tax filing deadline and PIR requirement for taxable entities", "summary": "Every taxable entity formed or organized in Texas or doing business in Texas must file an annual franchise tax report due May 15 (next business day if May 15 falls on a weekend or holiday), and the accompanying Form 05-102 Public Information Report (PIR) is due on the same annual franchise tax report due date. The PIR is due even if the entity is at or below the no-tax-due threshold, and failure to file a completed, signed PIR can forfeit the right to transact business. A $50 penalty is assessed on each report filed after the due date.", "body": "Every taxable entity formed or organized in Texas or doing business in Texas must file an annual franchise tax report due May 15 (next business day if May 15 falls on a weekend or holiday), and the accompanying Form 05-102 Public Information Report (PIR) is due on the same annual franchise tax report due date. The PIR is due even if the entity is at or below the no-tax-due threshold, and failure to file a completed, signed PIR can forfeit the right to transact business. A $50 penalty is assessed on each report filed after the due date.\n\nWhat Texas Comptroller of Public Accounts actually says:\n\n“The annual franchise tax report is due May 15. If May 15 falls on a weekend or holiday, the due date will be the next business day.”\n\nNote: Franchise Tax page, 'Due Dates' section. The franchise tax is 'a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas.' The PIR filing requirement and below-threshold rule are from the Comptroller PIR filing requirements page; the $50 late penalty is listed under 'Penalties' on the franchise page.", "source_type": "official", "source_link": "https://comptroller.texas.gov/taxes/franchise/", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Comptroller of Public Accounts", "evidence_quote": "The annual franchise tax report is due May 15. If May 15 falls on a weekend or holiday, the due date will be the next business day.", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Texas franchise tax annual report and Public Information Report", "topic": "Annual franchise tax filing deadline and PIR requirement for taxable entities", "applies_to_country": "US", "applies_to_scope": "Texas franchise tax (Tax Code Chapter 171) annual filing requirement", "tags": { "lane": "any", "stage": "running", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.tax" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_franchise_taxable_entities", "category": "Business", "title": "Whether sole proprietorships and single-member LLCs are subject to Texas franchise tax", "summary": "A sole proprietorship that is not legally organized in a manner that limits its liability is not a taxable entity for Texas franchise tax purposes, so a true sole proprietorship generally does not owe franchise tax or file the franchise report. A single-member LLC filing as a sole proprietor for federal income tax purposes IS a taxable entity and is subject to franchise tax (TTC 171.0002(d)); the legal form of the entity - not its federal tax treatment - determines filing responsibility.", "body": "A sole proprietorship that is not legally organized in a manner that limits its liability is not a taxable entity for Texas franchise tax purposes, so a true sole proprietorship generally does not owe franchise tax or file the franchise report. A single-member LLC filing as a sole proprietor for federal income tax purposes IS a taxable entity and is subject to franchise tax (TTC 171.0002(d)); the legal form of the entity - not its federal tax treatment - determines filing responsibility.\n\nWhat Texas Comptroller of Public Accounts actually says:\n\n“Are sole proprietorships subject to the franchise tax? A sole proprietorship that is not legally organized in a manner that limits its liability is not a taxable entity. A single-member limited liability company filing as a sole proprietor for federal income tax purposes is a taxable entity. TTC 171.0002(d).”\n\nNote: Franchise Tax FAQ, Taxable Entities section. This drives the choice of business structure: forming a Texas LLC creates franchise tax filing obligations (even at or below the no-tax-due threshold, the PIR must still be filed).", "source_type": "official", "source_link": "https://comptroller.texas.gov/taxes/franchise/faq/taxable-entities.php", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Comptroller of Public Accounts", "evidence_quote": "Are sole proprietorships subject to the franchise tax? A sole proprietorship that is not legally organized in a manner that limits its liability is not a taxable entity. A single-member limited liability company filing as a sole proprietor for federal income tax purposes is a taxable entity. TTC 171.0002(d).", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Which business structures are Texas franchise tax taxable entities", "topic": "Whether sole proprietorships and single-member LLCs are subject to Texas franchise tax", "applies_to_country": "US", "applies_to_scope": "Texas franchise tax taxable entity definitions (Tax Code 171.0002(d))", "tags": { "lane": "any", "stage": "any", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.tax" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_franchise_rates_2026_2027", "category": "Business", "title": "2026-2027 franchise tax no-tax-due threshold, tax rates and deduction limits", "summary": "For Texas franchise tax report years 2026 and 2027, the no-tax-due threshold is $2,650,000; the tax rate is 0.375 percent for retail or wholesale businesses and 0.75 percent for other businesses; the compensation deduction limit is $480,000; the EZ computation threshold is $20 million at a rate of 0.331 percent. Entities at or below the no-tax-due threshold still owe no tax but must file the required reports/PIR.", "body": "For Texas franchise tax report years 2026 and 2027, the no-tax-due threshold is $2,650,000; the tax rate is 0.375 percent for retail or wholesale businesses and 0.75 percent for other businesses; the compensation deduction limit is $480,000; the EZ computation threshold is $20 million at a rate of 0.331 percent. Entities at or below the no-tax-due threshold still owe no tax but must file the required reports/PIR.\n\nWhat Texas Comptroller of Public Accounts actually says:\n\n“2026 and 2027 No Tax Due Threshold $2,650,000 Tax Rate (retail or wholesale) 0.375% Tax Rate (other than retail or wholesale) 0.75% Compensation Deduction Limit $480,000 EZ Computation Total Revenue Threshold $20 million EZ Computation Rate 0.331%”\n\nNote: Franchise Tax page 'Tax Rates, Thresholds and Deduction Limits' table. Rates/thresholds vary by report year and are updated periodically; use the year's figures. For 2024 and 2025 the threshold was $2,470,000 with a $450,000 compensation deduction limit.", "source_type": "official", "source_link": "https://comptroller.texas.gov/taxes/franchise/", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Comptroller of Public Accounts", "evidence_quote": "2026 and 2027 No Tax Due Threshold $2,650,000 Tax Rate (retail or wholesale) 0.375% Tax Rate (other than retail or wholesale) 0.75% Compensation Deduction Limit $480,000 EZ Computation Total Revenue Threshold $20 million EZ Computation Rate 0.331%", "volatility": "medium", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Texas franchise tax rates and thresholds for report years 2026 and 2027", "topic": "2026-2027 franchise tax no-tax-due threshold, tax rates and deduction limits", "applies_to_country": "US", "applies_to_scope": "Texas franchise tax rates, thresholds and deduction limits", "tags": { "lane": "any", "stage": "running", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.tax" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_dba_sole_prop_county", "category": "Business", "title": "[Unverified - being checked] Where a sole-proprietor creator files an assumed name (DBA) certificate", "summary": "[Unverified - being checked] A sole proprietorship operating under an assumed name (DBA) must file an assumed name certificate with the county clerk in each county in Texas where the business maintains an office (or where business is conducted, if no Texas office). County clerks set their own fees, so the DBA filing cost for a sole proprietor varies by county.", "body": "A sole proprietorship operating under an assumed name (DBA) must file an assumed name certificate with the county clerk in each county in Texas where the business maintains an office (or where business is conducted, if no Texas office). County clerks set their own fees, so the DBA filing cost for a sole proprietor varies by county.\n\nWhat Texas Secretary of State actually says:\n\n“The following types of persons are required to file an assumed name certificate with the county clerk in each county in which a business office is or will be maintained. If the person does not maintain a business office in Texas, then in each county in which the person conducts business.”\n\nNote: Secretary of State Name Filings FAQs, 'Where do I file my assumed name certificate?' Sole proprietorships, general partnerships and joint ventures are among the persons filing at the county level. 'Persons who file on the county level should contact the applicable county clerks' offices for information on fees and on filing a certificate.' An assumed name certificate is effective up to 10 years.", "source_type": "official", "source_link": "https://www.sos.state.tx.us/corp/namefilingsfaqs.shtml", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Secretary of State", "evidence_quote": "The following types of persons are required to file an assumed name certificate with the county clerk in each county in which a business office is or will be maintained. If the person does not maintain a business office in Texas, then in each county in which the person conducts business.", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "DBA / assumed name filing for sole proprietorships in Texas", "topic": "Where a sole-proprietor creator files an assumed name (DBA) certificate", "applies_to_country": "US", "applies_to_scope": "Texas Business & Commerce Code Chapter 71 assumed name requirements for sole proprietorships", "tags": { "lane": "any", "stage": "setting_up", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.fees", "access.signup", "safety.privacy" ], "explicitness": "any" }, "verification": { "status": "unverified", "label": "Unverified - being checked", "reasons": [ "legal_fetch_over_cap" ], "checked_utc": "20261021-123916Z" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_dba_entity_sos_25", "category": "Business", "title": "Cost and place to file an assumed name (DBA) certificate when the business is an LLC, corporation or other filing entity", "summary": "Corporations, LLCs, limited partnerships, professional associations, limited liability partnerships and other filing entities must file the assumed name (DBA) certificate with the Texas Secretary of State for a $25 filing fee (plus $10 to abandon it). Since September 1, 2019 (HB 3609), these entities no longer also file at the county level; the certificate is effective up to 10 years.", "body": "Corporations, LLCs, limited partnerships, professional associations, limited liability partnerships and other filing entities must file the assumed name (DBA) certificate with the Texas Secretary of State for a $25 filing fee (plus $10 to abandon it). Since September 1, 2019 (HB 3609), these entities no longer also file at the county level; the certificate is effective up to 10 years.\n\nWhat Texas Secretary of State actually says:\n\n“Payment and Delivery Instructions: The filing fee for an assumed name certificate filed with the secretary of state is $25.”\n\nNote: Form 503 Instructions (Revised 08/19). Commentary states corporations, LLCs, limited partnerships, LLLPs and other foreign filing entities that conduct business under a name other than their legal name must file with the secretary of state. HB 3609, effective September 1, 2019, eliminated the county-level filing requirement for such entities.", "source_type": "official", "source_link": "https://www.sos.state.tx.us/corp/instructions/503.shtml", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Secretary of State", "evidence_quote": "Payment and Delivery Instructions: The filing fee for an assumed name certificate filed with the secretary of state is $25.", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "DBA / assumed name filing for business entities (LLCs, corporations) in Texas", "topic": "Cost and place to file an assumed name (DBA) certificate when the business is an LLC, corporation or other filing entity", "applies_to_country": "US", "applies_to_scope": "Texas Business & Commerce Code Chapter 71 assumed name requirements for filing entities", "tags": { "lane": "any", "stage": "setting_up", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.fees", "access.signup" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_llc_formation_fee_300", "category": "Business", "title": "Cost to form a domestic LLC in Texas", "summary": "The filing fee for a certificate of formation for a Texas LLC (Form 205) is $300. The form may be submitted by mail or courier to the Secretary of State, or electronically via SOSUpload for faster processing. Effective January 1, 2022, the certificate must also provide an initial mailing address (may be a PO box or street address) that the Comptroller will use for tax correspondence.", "body": "The filing fee for a certificate of formation for a Texas LLC (Form 205) is $300. The form may be submitted by mail or courier to the Secretary of State, or electronically via SOSUpload for faster processing. Effective January 1, 2022, the certificate must also provide an initial mailing address (may be a PO box or street address) that the Comptroller will use for tax correspondence.\n\nWhat Texas Secretary of State actually says:\n\n“Payment and Delivery Instructions: The filing fee for a certificate of formation for an LLC is $300.”\n\nNote: Form 205 Instructions (Revised 12/21). The same instructions state 'Taxes: LLCs are subject to a state franchise tax' and the initial mailing address rule that took effect January 1, 2022; the article 3 governing-authority section requires manager or member names and addresses. There is no separate annual LLC report to the SOS beyond the franchise tax report and PIR filed with the Comptroller.", "source_type": "official", "source_link": "https://www.sos.state.tx.us/corp/instructions/205.shtml", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Secretary of State", "evidence_quote": "Payment and Delivery Instructions: The filing fee for a certificate of formation for an LLC is $300.", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Texas LLC certificate of formation filing fee", "topic": "Cost to form a domestic LLC in Texas", "applies_to_country": "US", "applies_to_scope": "Texas Secretary of State LLC formation filing requirements", "tags": { "lane": "any", "stage": "setting_up", "region": [ "us-tx" ], "platform": "any", "topic": [ "money.fees", "access.signup" ], "explicitness": "any" } }, { "id": "learn_r176_texas_business_and_tax_for_creators_tx_llc_registered_agent_privacy", "category": "Business", "title": "[Unverified - being checked] Whether forming a Texas LLC puts your name and home address in a public register, and how a registered agent protects privacy", "summary": "[Unverified - being checked] A Texas LLC must maintain a registered agent (an individual resident of Texas or a domestic/foreign eligible entity) and a registered office at a street address where service of process can be personally served during normal business hours; the registered office may not be solely a mailbox service or telephone answering service. The certificate of formation, including the registered agent's name and office address and the initial managers'/members' names and addresses, becomes part of the public record. Using a commercial registered agent keeps the owner's name and home address out of the public filing, because the registered office may be the agent's address rather than the owner's home.", "body": "A Texas LLC must maintain a registered agent (an individual resident of Texas or a domestic/foreign eligible entity) and a registered office at a street address where service of process can be personally served during normal business hours; the registered office may not be solely a mailbox service or telephone answering service. The certificate of formation, including the registered agent's name and office address and the initial managers'/members' names and addresses, becomes part of the public record. Using a commercial registered agent keeps the owner's name and home address out of the public filing, because the registered office may be the agent's address rather than the owner's home.\n\nWhat Texas Secretary of State actually says:\n\n“The registered agent can be either (option A) a domestic entity or a foreign entity that is registered to do business in Texas or (option B) an individual resident of the state. The limited liability company cannot act as its own registered agent; do not enter the limited liability company name as the name of the registered agent.”\n\nNote: Form 205 Instructions (Revised 12/21), Article 2 and 'Office Address Requirements'. Article 3 requires the name and address of each initial manager (option A) or initial member (option B) on the public filing. SOSDirect (available 24/7 at a $1.00 statutorily authorized fee per search) lets anyone search Texas business records; social security numbers, credit card and bank account numbers, and access device numbers are confidential under the Public Information Act and are not released.", "source_type": "official", "source_link": "https://www.sos.state.tx.us/corp/instructions/205.shtml", "last_verified": "2026-09-12", "reliability": "STRONG PRACTICE", "source_tier": "A", "source_publisher": "Texas Secretary of State", "evidence_quote": "The registered agent can be either (option A) a domestic entity or a foreign entity that is registered to do business in Texas or (option B) an individual resident of the state. The limited liability company cannot act as its own registered agent; do not enter the limited liability company name as the name of the registered agent.", "volatility": "low", "from_batch": "176-texas-business-and-tax-for-creators", "subject": "Texas LLC registered agent and registered office; public record exposure", "topic": "Whether forming a Texas LLC puts your name and home address in a public register, and how a registered agent protects privacy", "applies_to_country": "US", "applies_to_scope": "Texas Business Organizations Code Chapter 5 registered agent/office requirements", "tags": { "lane": "any", "stage": "setting_up", "region": [ "us-tx" ], "platform": "any", "topic": [ "safety.privacy", "access.signup" ], "explicitness": "any" }, "verification": { "status": "unverified", "label": "Unverified - being checked", "reasons": [ "legal_fetch_over_cap" ], "checked_utc": "20261021-123916Z" } } ] }