Texas may not have a corporate income tax — but that doesn’t mean your business is off the hook. At Orsak Langner & Barthel PLLC, we help businesses throughout Houston and across Texas stay compliant with the Texas Franchise Tax, including preparation, calculation, and on-time submission of annual returns.
Navigate Franchise Tax Requirements with Confidence
The Texas Franchise Tax is a state-level business tax imposed on entities operating in the state, including corporations, LLCs, partnerships, and certain trusts. Whether you’re a new business or have been operating for years, it’s essential to file correctly and on time — especially if you're subject to annual revenue thresholds or use complex apportionment methods.
At Orsak CPAs, our team ensures:
- You know whether you need to file (and when)
- Your taxable margin is calculated using the most advantageous method
- All eligible deductions and exclusions are applied
- Multi-state income is properly apportioned to Texas
- You avoid costly penalties from incorrect or late filings
We also help file the Public Information Report (PIR) or Ownership Information Report (OIR) required by the Texas Comptroller along with the tax return.
Who We Serve
- LLCs and corporations registered or doing business in Texas
- Out-of-state entities with a physical or economic presence in Texas
- Businesses unsure whether they meet the filing threshold
- Growing companies who have outgrown EZ Computation or no-tax-due status
- Partnerships and joint ventures navigating pass-through income and entity rules
Our CPAs stay up to date with changing Texas tax laws, exemptions, and thresholds — so you don’t have to.
What Is the Texas Franchise Tax?
The Texas Franchise Tax is a tax on the privilege of doing business in Texas, administered by the Texas Comptroller of Public Accounts. Unlike income tax, it’s based on a business’s gross revenue, and applies to most for-profit entities registered in the state — even if they don’t turn a profit.
If your total revenue exceeds the annual threshold (updated regularly by the Comptroller), you're required to file a Franchise Tax Report and pay any tax due. Filing is required even for many pass-through entities and out-of-state businesses.
How Franchise Tax Is Calculated
There are multiple methods to calculate your taxable margin, and choosing the right one can significantly reduce what you owe. Orsak CPAs helps you select the method that’s most beneficial for your business:
- Total Revenue minus Cost of Goods Sold (COGS)
- Total Revenue minus Compensation
- Total Revenue times 70%
- Total Revenue minus $1 million standard deduction (for qualifying small businesses)
Once the margin is calculated, the applicable tax rate depends on your business type and total revenue. Most entities qualify for a lower rate or EZ Computation, but only if filed correctly.
Who Must File in Texas?
You are required to file a Franchise Tax Return if your entity is:
- A corporation, LLC, LP, or business trust
- Registered in Texas or doing business in Texas
- Above the current no-tax-due threshold (updated annually)
Even if no tax is due, many businesses are still required to file an annual report. Failure to file can lead to loss of good standing and administrative penalties from the state.
Why Choose Orsak CPAs for Franchise Tax Returns?
At Orsak Langner & Barthel PLLC, we’ve helped businesses across Houston and Texas understand, prepare, and file their franchise tax returns accurately and on time. We know the forms, the thresholds, and how to protect your compliance status with the Comptroller’s office.
With Orsak CPAs, you get:
- Accurate calculation of taxable margin and apportionment
- Knowledge of the latest thresholds and rule changes
- Complete filing of PIR/OIR and required schedules
- Audit support if you’re selected for review
- Strategic tax planning to minimize exposure in future years
Pair this service with Tax Planning, or Preparation of Financial Statement for full compliance and long-term peace of mind.
