Transcription of Forms of Business and the Texas Franchise Tax
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Forms of Business and the Texas Franchise Tax
A Study by the TTARA Research Foundation Forms of Business and the Texas Franchise Tax TTA RA. 400 West 15 th Street, Suite 400. Austin, Texas 78749. (512) 472-3127. (512) 472-2636 (fax). email : ttara@ttara .org FbRhfS OF BU,SII~'ESSAND THE STUD "grT&'E A", ' -Wk EAR -KF&Nn4rioN. s. RANCHISE :T. EXECUTIVE SUMMARY : Forms OF Business AND THE. Texas Franchise TAX. Since the Select Committee on Tax Equity first raised the issue that increasing amounts of Business activity in Texas was being conducted in non-corporate entities, the relationship between Business "form" and the state's tax system has been a subject of considerable debate, but not much study . This report attempts to remedy that situation . Modern businesses have many choices in how they structure their operations and how they organize different parts of their operations . A Business today is likely to appear to the outside world like a single entity, but behind the front door, it is common to find a collection of separately organized entities that perform different parts of the company's Business .
over for the owners), the effect of taxes on the forms and methods of operating the business is also significant. Tax considerations enter into decisions on how to structure and organize the individual
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