TX Franchise Tax

[lablab123]

we are forming a s corporation in tx and i have a question about the franchise tax. as i understand, corps pay the greater of the tax on net taxable capital or net taxable earned surplus. i am trying to get a rough estimate of what this tax could amount to. our assets include a concession trailer ($16k) and a bbq smoker ($12k). can the tax amount be estimated if we make profits of $15k in 2001?

i would appreciate your help.

 

[loku]

Texas franchise tax

You are right about the tax liability for an s corporation.
You can compute the tax yourself and try out different scenarios. Download the Texas Corporation Franchise Tax Report at http://www.window.state.tx.us/taxinfo/taxforms/05-142.pdf. Get the Instructions at http://www.window.state.tx.us/taxinfo/taxforms/05-364.pdf.