18
Nov
Introduction Chapter 171 of the Texas Tax Code, also known as the Texas Franchise Tax, is a critical aspect for businesses operating in Texas. This article aims to provide a comprehensive understanding of its components, implications, and compliance requirements. Overview of Chapter 171 of the Texas Tax Code Definition and Purpose Chapter 171 governs the franchise tax—a state tax levied on certain businesses for the privilege of conducting business in Texas. It applies to corporations, LLCs, partnerships, and other business entities. Key Provisions in Chapter 171 Tax Base and Rate The franchise tax is calculated based on a business’s "margin,"…