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)
Local tax facts for Texas
ItemDetail
State income taxNone on individuals or wages
Franchise taxReport 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 rates0.75% of taxable margin, 0.375% for retail and wholesale, or 0.331% of revenue on the EZ computation (revenue up to $20 million)
Sales tax6.25% state rate plus up to 2% local, so 8.25% at most
Remote sellersMust 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 propertyRendition to your county appraisal district due April 15
New LLCCertificate of Formation (Form 205) with the Secretary of State, $300 filing fee

Running a business in Texas?

One accountant for your books, payroll, sales tax and both returns, on one monthly fee.

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Who we help

Which 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.

Cities

Where in Texas?

Local tax facts and notes for each area we cover.

Questions

Still wondering?

Ask anything else on a free 30-minute call.

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Do 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.

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