Bookkeeping, payroll and taxes for Texas businesses
Texas has no state income tax on people, but businesses still owe. Most LLCs and corporations file a franchise tax report every May, sellers collect up to 8.25% sales tax, and employers pay Texas unemployment tax. We handle all of it, plus your federal returns, for one monthly fee.
Updated November 2026
What do Texas businesses actually owe?
Texas is known for having no income tax, and that's true for people. Your wages, your share of LLC profit and your S-Corp distributions aren't taxed by the state. But the state collects from businesses in three other ways, and owners who just moved here are often caught off guard by all three.
The first is the franchise tax. Almost every LLC, corporation and partnership with liability protection is subject to it. Most small businesses owe nothing, because the no tax due threshold is $2,650,000 of total revenue for 2026 and 2027 reports. But "owe nothing" still means "file something". Every year by May 15 you file a Public Information Report (corporations and LLCs) or an Ownership Information Report (partnerships and others). Miss it and the state can forfeit your right to do business, which also strips the liability protection you formed the LLC for.
The second is sales tax. The state rate is 6.25%, and cities, counties, transit authorities and special districts can add up to 2%. In most of the big metros the total is the 8.25% cap. Texas taxes more services than most states, including data processing, information services, some repair work and security services, so a service business can't assume it's exempt.
The third is payroll tax through the Texas Workforce Commission. There's no state income tax to withhold, which makes Texas payroll simpler than most, but employers pay state unemployment tax on the first $9,000 of each employee's wages and file quarterly wage reports.
How does a remote accountant work for a Texas business?
Everything happens online. We connect to your bank and card accounts, keep your books in QuickBooks Online or Xero, and run payroll in Gusto or ADP. You get one accountant who knows your numbers, a monthly close and a short call when something needs a decision. Clients find us through our Google Business Profiles in Prosper and Pflugerville, but we work with Texas owners from El Paso to Beaumont, and with owners in every other state.
Which Texas deadlines matter most?
- January 31: TWC fourth-quarter wage report, and W-2s to employees
- April 15: business personal property renditions to your county appraisal district
- April 30, July 31, October 31: TWC quarterly wage reports
- May 15: franchise tax report and information report
- 20th of each month: sales tax returns for monthly filers (quarterly and yearly filers have their own dates)
| Item | Detail |
|---|---|
| State income tax | None on individuals or wages |
| Franchise tax | Report due May 15. No tax due at or under $2,650,000 of total revenue for 2026 and 2027 reports, but you still file an information report |
| Franchise tax rates | 0.75% of taxable margin, 0.375% for retail and wholesale, or 0.331% of revenue on the EZ computation (revenue up to $20 million) |
| Sales tax | 6.25% state rate plus up to 2% local, so 8.25% at most |
| Remote sellers | Must collect once Texas sales pass $500,000 in the past 12 months |
| Unemployment tax (TWC) | Paid by employers on the first $9,000 of each employee's wages; new employers usually start at 2.7% |
| Business personal property | Rendition to your county appraisal district due April 15 |
| New LLC | Certificate of Formation (Form 205) with the Secretary of State, $300 filing fee |
Sources
- Texas Comptroller: Sales and use tax
- Texas Comptroller: Franchise tax
- Texas Workforce Commission: Employers
- Texas Comptroller: Property tax rendition
General information, not tax advice for your situation.
Running a business in Texas?
One accountant for your books, payroll, sales tax and both returns, on one monthly fee.
Book a callWhich Texas businesses do we work with?
Owners who want one person on their numbers all year.
Owners who moved to Texas
You left a state income tax behind, but your old state may still want a final part-year return. We file both.
Trades and construction
Job costing, sales tax on materials and taxable repair work, and payroll for crews.
Real estate investors and agents
Rental books, 1099s for contractors, depreciation and an entity setup that fits.
Online sellers
Texas permits, local rate tracking and economic nexus in other states.
Restaurants
Tip reporting, daily sales tax on food and drink, and payroll that keeps up.
S-Corp owners
A reasonable salary on payroll, the 1120-S, and a franchise tax report every May.
Where in Texas?
Local tax facts and notes for each area we cover.
Dallas
DART share of sales tax, Dallas CAD and the city certificate of occupancy.
See this pageFort Worth
Tarrant County, logistics and trades, and a split city across five counties.
See this pageHouston
METRO sales tax, Harris CAD, energy contractors and storm-season deadlines.
See this pageAustin
Startups with Delaware entities, Capital Metro tax and Travis CAD.
See this pageSan Antonio
Bexar County, contractors near the bases and hotel tax on short-term rentals.
See this pageProsper
A fast-growing Collin and Denton County town of trades, agents and practices.
See this pagePflugerville
Travis and Williamson County, the SH 130 corridor and side businesses.
See this pagePlano
DART sales tax, Collin CAD and corporate-campus consultants.
See this pageFrisco
Collin and Denton County, sports, franchises and fast growth.
See this pageMcKinney
Collin County, a historic downtown and the trades behind new homes.
See this pageIrving
Las Colinas offices, DFW Airport logistics and Dallas CAD.
See this pageArlington
Tarrant County, the entertainment district and event businesses.
See this pageRound Rock
Williamson County, tech suppliers and retail along I-35.
See this pageKaty
Three counties, energy households and suburban service businesses.
See this pageSugar Land
Fort Bend County, healthcare and owners with ties abroad.
See this pageThe Woodlands
A Montgomery County township of energy and professional firms.
See this pageWhat can we take off your plate?
Every service works the same wherever you are. One job, or all of it every month.
Bookkeeping
from $250/mo
Monthly books in QuickBooks Online or Xero, plus catch-up work when you're behind.
See the servicePayroll
setup from $200
Gusto or ADP set up, run and filed for your whole team.
See the serviceSales tax
from $75/mo
Nexus checks, permits and returns in every state where you owe.
See the serviceBusiness tax returns
from $650
Form 1065, 1120-S or 1120 plus your state returns, prepared and e-filed.
See the servicePersonal tax returns
from $450
Form 1040 and your state return for owners, freelancers and families.
See the serviceTax planning and CFO
review from $350
Entity choice, owner salary, quarterly estimates and forecasts.
See the serviceLLC formation
from $299 + state fee
Your LLC in any state, the EIN and an S-Corp election if it fits.
See the serviceITIN and cross-border
from $300
ITINs, US expat returns, non-resident returns and Form 5472.
See the serviceDo I have to file a Texas franchise tax report if I made no money?
Yes. If your revenue is at or under the $2,650,000 threshold, you owe no tax, but an LLC or corporation still files a Public Information Report by May 15 each year.
Does Texas tax my LLC profit?
Not with an income tax. Your LLC may owe franchise tax if revenue is over the threshold, and it may need to collect sales tax, but the profit you take home isn't taxed by Texas.
What is the sales tax rate in Texas cities?
The state rate is 6.25% and local add-ons can reach 2%, so the total is 8.25% at most. Dallas, Houston, Austin, San Antonio and Fort Worth are all at 8.25%.
Do I need to be in Prosper or Pflugerville to work with you?
No. Those are where our Google profiles are. We work with businesses anywhere in Texas, and across the US, entirely online.
Tell us what's messy. We'll tell you what it takes.
Tell us what you need and get a fixed price before any work starts. No pressure and no contract.