State Franchise Tax

State franchise taxes are specific to both your turnover and the state your franchise operates in. With each state having unique and multiple formulas to compute franchise tax, we play an essential role in working out options to reduce your tax burden to the least.The State of Texas collects Franchise Tax, also known as the "Margin Tax," from all for-profit corporations, limited liability companies, limited partnerships, business trusts, and professional associations in exchange for the privilege of doing business in the State. Some non-profits are also subject to the tax. Each year, companies pay the more significant tax on net taxable capital or net taxable earned surplus at the rate of .5% for wholesalers or retailers and 1.0% for all others. Companies with less than $1,000,000 in revenue are exempt from the tax but are still required to file a report.

Next Level Tax State Franchise Tax

Next Level Tax provides Texas Franchise Tax preparation and filing for Texas entrepreneurs. Additionally, we can represent you to the State's auditors if the Comptroller targets your business for an audit.


If the Texas Comptroller has notified you that you are being audited, you should carefully consider whether to retain a professional to represent you during the audit. Though many small business owners choose to handle the audit independently, some find having a skilled and knowledgeable professional to be of tremendous value.

We can help you prepare for the audit to identify and mitigate any actual or potential issues before the auditor examines your records. Alternatively, we can review your assessment after the auditor has completed his or her fieldwork to see how we can reduce the amount due.