Texas Franchise Tax

The NEW MARGIN TAX.
The Texas franchise tax is a privilege tax imposed on each corporation and limited liability company chartered/organized in Texas or doing business in Texas. (This is a new way of calculating the Texas Franchise Tax.)
Taxable entities: (domestic or foreign)
Corporations
Limited Liability Companies
Partnerships (General, Limited, and limited liability)
Business Trust
Professional Associations
Joint Ventures
Other legal entities with statutory liability protection

Non Taxable Entities
Sole proprietorships
General Partnerships (directly and wholly owned by natural persons)
Passive Entities
Estates
Escrow
REITs
Trust (non business trust)

Latest News:
The deadline for the extension has been extended to JUNE 15...from May 15, 2008 . Sounds like a big relief to TP.
Calculating the Tax
Most entities pay at the rate of 1/2% to 1%.. Retailers pay the 1/2% and wholesalers 1%.
They are three ways to calculate your tax liability; the..
Cost of Goods Sold Method
Compensation Method
Alternative Method
For the initial report, the net taxable capital rate is prorated over the initial period.
New forms and instructions for 2008 are here now.

Caution: Every reporting entity must report even if no tax is due.