The failure of a taxable entity to file Texas franchise tax reports or pay franchise tax when due can have serious consequences, including loss of the ability of the entity to sue or defend itself in court and liability of directors and officers for the entity’s debts. But there are ways to mitigate the damage.
What’s a Taxable Entity?
Under the Texas franchise tax, a taxable entity generally includes:
- partnership,
- limited liability partnership,
- corporation, banking corporation,
- savings and loan association,
- limited liability company, business trust,
- professional association,
- business association, joint venture,
- joint stock company,
- holding company, or
- other legal entity.
