tx-franchise-tax

What problem does it solve?

The Texas Franchise Tax calculation is complex, with multiple margin methods, EZ computation, and threshold rules. This Skill automates the process to reduce manual errors and ensure consistent results.

Core Features & Use Cases

• Compute taxable margin using four methods: 70% of revenue, revenue minus COGS, revenue minus compensation (subject to per-person cap), and revenue minus $1,000,000.
• EZ Computation option for entities with total revenue ≤ $20M.
• Apply no-tax-due threshold and filing requirements, and account for credits such as R&D and historic structures.
• Understand nexus, due dates, and filing procedures for Texas franchise tax.
• Use case: compare methods to minimize tax, determine eligibility for EZ computation, and prepare accurate filing data.

Quick Start

Provide total revenue, COGS, compensation, and entity type to compute Texas Franchise Tax liability using all margin methods and EZ, then return the lowest result with any applicable credits.