Texas · No personal income tax, franchise tax
CPA, bookkeeping & fractional CFO services in Texas
Texas has no personal income tax, but most LLCs, partnerships and corporations owe the Texas franchise tax, which is based on margin rather than profit. CPA Torrance is a CPA-led firm based in Torrance, California that provides bookkeeping, tax planning, tax filing and fractional CFO support to Texas businesses remotely.
- Serving all of Texas remotely
- Texas franchise tax reports tracked for you
- Monthly reporting included
In short
Does Texas have a state income tax for businesses?
Texas has no personal income tax, so owners of pass-through businesses pay only federal income tax on their share of profit. Most entities with liability protection, including LLCs and corporations, file an annual franchise tax report based on margin, and many small businesses fall under the no-tax-due threshold but still have to file. Sales tax is 6.25% at the state level, with local taxes bringing the combined rate up to 8.25%.
- State income tax
- None
- State sales tax
- 6.25% + local (up to 8.25%)
- Key business tax
- Franchise (margin) tax
- How we serve
- Remotely, statewide
Services in Texas
What we do for Texas business owners
From Houston energy suppliers and Dallas professional firms to Austin startups and San Antonio contractors, Texas businesses grow fast and need books that keep up. We provide monthly bookkeeping, federal and Texas tax planning, filings and CFO reporting from one coordinated team.
Bookkeeping Services
- Monthly reconciliations in QuickBooks Online
- Texas sales and use tax tracking by location
- Payroll and contractor payment review
- Monthly profit and loss and balance sheet
- Catch-up and clean-up bookkeeping
Tax Planning & Strategy
- Entity and S corporation review
- Franchise tax margin calculation review
- Federal and state estimated payments
- Multi-state income review
- Year-end tax planning meeting
Tax Filing & Compliance
- Federal business returns (1120, 1120S, 1065)
- Texas franchise tax and Public Information Reports
- Owner individual returns
- IRS and state notice help
- Due-date tracking for every filing
Fractional CFO Services
- Cash-flow forecasts
- Budget versus actual reviews
- Margin and pricing analysis
- Lender- and investor-ready reporting
- Growth and hiring plans
Texas tax planning
Planning around Texas taxes
With no state income tax, Texas planning focuses on federal tax, the franchise tax margin calculation, sales tax and the states where you actually operate.
Book a 15-min callFranchise tax filing
Even businesses under the no-tax-due threshold must file. We choose the margin method that gives the lowest tax and file on time.
Federal-first planning
With no state income tax, entity choice, owner salary and retirement plans drive most of the savings.
Multi-state exposure
Texas companies selling into other states may owe income or sales tax there. We review your nexus each year.
Who we work with
Texas industries we serve
We work with owner-led businesses across Texas, with experience in the industries that drive the state economy.
Energy services
Oilfield suppliers and service companies with equipment-heavy books.
Construction and trades
Job costing and equipment for fast-growing contractors.
Technology startups
Investor-ready books and burn tracking for Austin and Dallas founders.
Real estate investors
Property-level accounting for Texas landlords and developers.
E-commerce sellers
Online brands with Texas sales tax, inventory and multi-channel books.
Professional firms
Consultants, agencies and law firms billing by the hour, project or retainer.
Why Texas businesses choose CPA Torrance
Areas we cover
Serving businesses across Texas
Businesses in Houston, Dallas, Austin, San Antonio, Fort Worth work in energy, technology, real estate, healthcare and logistics. CPA Torrance helps Texas businesses, including those owned from out of state, stay compliant and organized through remote meetings.
- Houston
- Dallas
- Austin
- San Antonio
- Fort Worth
- El Paso
- Plano
- Arlington
- Frisco
- Corpus Christi
- Video meetings on your schedule
- Secure document portal for statements and returns
- Cloud accounting you can see any time
FAQ
Texas business tax and accounting questions
Not covered here? A 15-minute call gets you a straight answer for your situation.
What financial services can CPA Torrance provide to Texas businesses?
We provide monthly bookkeeping, federal and Texas tax planning, business tax filing and fractional CFO services. Everything runs from one set of books, so your bookkeeper, CPA and CFO advisor work from the same numbers.
Do I have to file a Texas franchise tax report if I owe nothing?
Yes. Most taxable entities must file an annual report even when revenue is below the no-tax-due threshold. Missing the filing can lead to penalties and loss of good standing.
Is an S corporation still useful in Texas?
Often, yes. With no state income tax, S corporation savings come from lower federal self-employment tax, so the math is usually simpler than in high-tax states.
How does Texas sales tax work for service businesses?
Many services are taxable in Texas, including some data processing and repair services. We review what you sell and set up your books to collect and report correctly.
Can CPA Torrance work with Texas businesses remotely?
Yes. We serve businesses across Texas, including Houston, Dallas, Austin, San Antonio, Fort Worth, El Paso, Plano, Arlington, Frisco and Corpus Christi, through video meetings, a secure document portal and cloud accounting you can see any time. Our office is in Torrance, California.
How do I get started?
Book a 15-minute call or request a free financial assessment. We review your books, tax position and systems and recommend the right mix of support for your Texas business.
Get your Texas books and taxes in order.
Book a call to review bookkeeping and tax planning for your Texas business.