Tax issues for Texas firms generally fall into three categories: federal income taxes, employment taxes and state taxes. Below is a general summary of those three categories, but the application of tax laws is complex and variable from firm to firm based on the specific circumstances. Every firm should hire a qualified tax adviser to guide them.
Federal income taxes: The mechanics of federal income taxation largely depend on how a firm is structured. Typically, a firm will be structured as a PC, a PLLC or an LLP. Some even may operate as a sole proprietor without any liability-shielding entity (they should probably go talk to a lawyer about that). Based on the structure, a firm will be taxed for federal tax purposes as a corporation, a partnership or a sole proprietorship. All tax return due dates described below assume that a firm operates on a calendar year.
