The Comptroller's office maintains a toll-free number to answer your franchise tax questions. The franchise tax is imposed on each corporation that is chartered in Texas or has a Certificate of Authority to do business in Texas. Non-Texas corporations doing business in Texas without a Certificate of Authority are also liable for Texas franchise tax. However, professional associations and limited liability partnerships are not liable for the franchise tax. The reports can be signed by any individual authorized by the corporation.
Corporations pay the greater of the tax on net taxable capital or net taxable earned surplus.
The rates and computations discussed below are effective for reports originally due on or after January 1, 1994. Surplus means the net assets of a corporation minus its stated capital. For a limited liability company, surplus means the net assets of the company minus its members' contributions. For more details on surplus, see rule 3.551 . Taxable capital is apportioned using a single gross receipts factor.