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Texas

Texas franchise tax for contractors

Most small Texas contractors owe no franchise tax and still have to file, and the filing is the only thing keeping the entity in good standing. These guides cover the threshold, the no tax due report, and what happens to a company that quietly stops filing.

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3 guides on this

How to run the businessThe tax bill Texas does not sendNo state income tax and no corporate income tax in Texas. Below $2,650,000 of revenue your franchise tax is zero and the only filing is Form 05-102 by 15 May. Miss it and a forfeited LLC loses the right to sue the GC sitting on your money.How to run the businessTexas Contractor TaxesTexas levies no personal or corporate income tax, so a contractor's whole income tax year is federal. The four 2026 estimated dates, self-employment tax at 15.3 percent on 92.35 percent of profit, the safe harbor, the QBI deduction, and $145,000 worked to the check.How to run the businessForm the LLC: what $300 buys youTexas does not license general contractors, so the entity is the one line you control. Form 205 costs $300 and takes an afternoon, the franchise tax report is free below $2,650,000, and a single member LLC files the same Schedule C you file today. Side by side, with a straight recommendation.

The rest of the Texas library

Bidding and prequalification in TexasPricing construction work in TexasGetting paid on Texas constructionTexas lien rights and deadlinesFinding construction work in TexasThe Texas electrician licence ladderThe Texas plumbing licence ladderThe Texas trades with no licence to wait for
Every guideThe whole Texas libraryHow to run the business