Welcome to Italy-America Chamber of Commerce Texas

Doing Business in Texas

Business Entities

Generally there are seven types of entities available to individuals and entities waiting to transacting business in Texas, however the most common forms utilized by foreign investors include: Corporation, Limited Partnership, Limited Liability Partnership, Limited Liability Company and Joint Ventures.

Each form has its own advantages and disadvantages. Depending upon the purpose of investing in Texas certain entities can better fit the needs of the investor. Upon request, the Chamber is available to help the Italian investor to gather information about each type of entity in order to make a well-informed choice.

Taxation - An Overview

*Tax*	*Description*
Personal Income Tax	State: None
Corporate Income/Franchise Tax	Federal Income tax: generally 35% of Taxable Income State Franchise Tax: $2.50 per $100 taxable capital or 4.5% of earned surplus, whichever is greater
Property Tax (Per $100 Valuation)	State - None City - Depending on Location County - Depending on Location School - Depending on Location Community College - Depending on Location
Unemployment Insurance	2.7% general entry rate, charged on first $9,000 in earnings, reassessed after 6 quarters and charged at own experience rate

*Tax (Continued)*	*Description*
Sales & Use Tax	State � 6.25% County � Depending on Location City � Depending on Location Transit � Depending on Location
Workers Compensation	Not required, rates no longer set by state authorities
Licenses & Permits	Varies by industry and regulating agency
Certificate of Authority	$750, required to do business in Texas for partnerships and corporations organized in other states
DBA (Doing Business As)	Fee varies according to county, required if not incorporated or if doing business under a name other than that in which business incorporated

Back to Table of Contents

Next: "Major Texas Cities, A Profile"

info.houston@italchambers.net