1. Guide To Houston Small Business Tax Exemption
2. Guide To Houston Small Business Taxes
3. Guide To Houston Small Business Tax Relief
4. Guide To Houston Small Business Tax Credit

Get started growing your Houston business with our easy to follow checklist. From business insurance and employee identification numbers, to business structure and taxes, we give you the guide to small business success. A Franchise Tax is a privilege tax imposed on each taxable entity chartered/organized in Texas or doing business in Texas. Operating without a sales tax permit is a crime punishable by a fine of up to $500 for each day a business operates without a permit.

The full company tax rate is 30% and the lower company tax rate is 27.5%. From the 2017–2018 income year, your business is eligible for the lower rate if it’s a base rate entity. A base rate entity is a company that both: has an aggregated turnover less than $50 million from 2018–2019 ($25 million for 2017 –2018.

Start A Business

• The Texas franchise tax rate for most businesses is.75% of the taxable margin. However, for qualifying wholesalers and retailers (meaning, generally, businesses primarily engaged in wholesale or retail trade), the rate is 0.375%.
• Small Business Gift Guide The holiday season is upon us and I want to help you with all your shopping with this Small Business Gift Guide. Many small businesses took a hit in 2020 with the pandemic, so now is the time to show our support.

Startup Guide

The following are four main requirements for a business to legally operate in the City of Houston.

1. Business Entity Registration

Sole Proprietorship & General Partnership

A Sole Proprietorship or General Partnership doing business under a name other than the name of the owner requires a DBA (Doing Business As) Certificate from the clerk's office of the county in which the business is being conducted. Many counties have a searchable database of the listed business names used. Filing a DBA does not secure nor protect your business name. All types of business entities (SP, LLC, INC, etc.) must file a DBA.

*For more information, contact your local county clerk's office.*

Limited Liability Company, Corporation, Limited Partnership & Others

A LLC, INC, LP, LLP, or a Non-Profit business files with the Texas Secretary of State. These business types are independent entities therefore filing of a business name with the Texas Secretary of State protects this name (in Texas only), therefore no other business can use this name within the state. This department also keeps records of business names in a searchable database.

2. Texas Sales Tax Permit

Guide To Houston Small Business Tax Exemption

A business must obtain a Texas Sales & Use Tax permit from the Texas State Comptroller Office if they are engaged in business in Texas and they are selling tangible personal property, leasing personal property, or selling a taxable service in Texas. There is no fee for the Texas Sales and Use Tax permit but a business could be required to post a security bond. A Franchise Tax is a privilege tax imposed on each taxable entity chartered/organized in Texas or doing business in Texas. Operating without a sales tax permit is a crime punishable by a fine of up to $500 for each day a business operates without a permit.

Guide To Houston Small Business Taxes

3. Federal Tax Identification Number

A Federal Tax Identification Number, also known as an Employer Identification Number (EIN), is a nine-digit number the Internal Revenue Service (IRS) assigns in the following format: XX-XXXXXXX. An EIN is used to identify the tax accounts of employers and certain other businesses that have no employees. Generally, businesses need an EIN, with a few limited exceptions, but there is no fee for filing an EIN with the IRS.

Guide To Houston Small Business Tax Relief

4. Property Tax Rendition>

All businesses are required to file a rendition within the county they are in listing business personal property assets (including, inventory, raw materials, improvements, machinery and equipment, furniture, fixtures, computer equipment, and vehicles used for business purposes).

Property assets must be located in the taxing jurisdiction for more than a temporary period. If the business’ total value of property assets is $500 or less, then it isn’t required for the business to file a rendition. Filling will be open from January 1st until April 15th.

*For more information, contact your local county apprasial district.*

Guide To Houston Small Business Tax Credit

If you’re a small business owner, you have a lot on your plate, and every day brings a new set of challenges. When it comes to managing your finances, make sure you are as thorough and accurate as possible with the help of PADGETT BUSINESS SERVICES®. We are a small business tax service in Houston that is dedicated to helping your business succeed. Backed by a name with over 50 years of experience, we’ll be the business partner you deserve.

For quality tax services and reliable business consultants, look no further than PADGETT BUSINESS SERVICES®. We’ll help you take your business to the next level. Contact us today at (281) 666-2975.
Contact Us