Search found 4 matches

by KaiserB
Mon Jun 27, 2011 10:58 pm
Forum: Instructors' Corner
Topic: Business Side of Things
Replies: 25
Views: 5246

Re: Business Side of Things

AlaskanInTexas wrote:
sjfcontrol wrote:Also, I have verified with my Financial Planners, that the no-tax threshold for the Tx Franchise tax is $1M this year. I've asked for more info from my accountant, but believe this to be correct.
The threshold for reports filed in 2011 (based on 2010 activity) is $1 million. For reports filed in 2012 (based on 2011 activity) the threshold drops to $600,000 (my knowledge of Texas tax laws > my knowledge of Texas gun laws; my one chance to shine on this forum).
You are correct: http://www.tklaw.com/resources/document ... nreath.pdf" onclick="window.open(this.href);return false;
by KaiserB
Mon Jun 27, 2011 3:51 pm
Forum: Instructors' Corner
Topic: Business Side of Things
Replies: 25
Views: 5246

Re: Business Side of Things

sjfcontrol wrote:The franchise fee is only applicable to businesses earning over $1M, as I recall. You may need to fill out a return, but they'll be no franchise tax paid unless you become VERY successful.

Texas Franchise Tax Rates

The franchise tax rates are:

1.0% (.01) for most entities
0.5% (.005) for qualifying wholesalers and retailers*
0.575% for those entities with $10 million or less in Total Revenue (annualized per 12 month period on which the report is based) electing the E-Z Computation

*Qualification for 0.5% Tax Rate

Taxable Entities primarily engaged in retail or wholesale trades qualify to use the 0.5% tax rate.



Taxable Entities

Rule 3.581

What entities are subject to the franchise tax?
The revised franchise tax applies to partnerships (general, limited and limited liability), corporations, LLCs, business trusts, professional associations, business associations, joint ventures and other legal entities. TTC 171.0002.

What entities are not subject to the revised franchise tax?
The revised franchise tax does not apply to:

sole proprietorships (except the tax does apply to single member LLCs filing as a sole proprietor for federal income tax purposes);
general partnerships directly and solely owned by natural persons (except the tax does apply to all limited liability partnerships);
entities exempt under Subchapter B of Chapter 171; and
passive entities (as defined under TTC 171.0003). Note that some passive entities have an annual reporting requirement to affirm their passive status. See FAQ#8 under Passive Entities Rule 3.582.

Is there a minimum tax?
No. Corporations that owe less than $100 do not have to pay any tax, but they must file a report. Also, corporations will not owe any tax if the gross receipts from their entire business for both taxable capital and taxable earned surplus are each less that $150,000 during the period upon which the tax is based.
by KaiserB
Mon Jun 27, 2011 1:25 pm
Forum: Instructors' Corner
Topic: Business Side of Things
Replies: 25
Views: 5246

Re: Business Side of Things

Crossfire wrote:
If you are not an NRA member, then join up, and get their instructor liability insurance. Most ranges won't let use their facility to qualify your classes unless you are insured.
+1 on the NRA insurance for NRA instructors ...
by KaiserB
Mon Jun 27, 2011 1:24 pm
Forum: Instructors' Corner
Topic: Business Side of Things
Replies: 25
Views: 5246

Re: Business Side of Things

silentex wrote:It's a little premature considering the fact that I haven't taken the class yet, but I'd like to get everything sorted out prior to even considering teaching a class. In regards to the legal aspect of getting started, I know that I'll need to:

- File a DBA
- Get an EIN
- Get a Bank Account

But, I'm unsure of a few different things. First, I know there a good number of folks out there who rent firearms and sell ammunition to their students. What are the legal implications behind this? Since you're selling ammo, do you need an FFL?

And this is simply curiosity, when it comes to taxes, what kind of deductions are out there for a home CHL business? I know of the typical home office, mileage, etc. But, I'm a little new to this whole concept, so I'd love to not drive myself into the ground before I even get started. This is a VERY part-time venture, likely to only teach a few classes a year, but I'd prefer that it'd be all legal when the time comes.

Thanks, y'all.
FFL is for firearms transfers not ammo transfers (unless you are manufacturing the ammo)

If you own assets of any type I would suggest incorporating and purchasing insurance. Getting an EIN and bank account are no brainer. As for tax benefits look at the IRS Schedule C and you will get a good idea. Basically any items, milage, rents, etc you pay from your business on behalf of your business you can write off. If it is a part time gig, I would stay away from the business use of home deductions as they are a pain to calculate and justify.

Renting firearms and selling ammo is subject to sales tax. Corporate receipts in the State of TX are subject to franchise tax.

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