Shortly after I moved to Texas from Washington, D.C., a federal judge called me about a potential conflict with a party in a lawsuit I just filed. Once the conflict was resolved, and recognizing I didn’t have a Texas accent, he asked if I was new to Texas and then welcomed me. This was years ago and the numbers of those moving to Texas has only increased. California, in particular, seems to generate many newly minted Texans. The exodus from California is real and it involves high-profile moves like Elon Musk and hundreds of other Californians. The reasons for the exodus are usually cost of living and no state income taxes. However, the California Franchise Tax Board (FTB) is notoriously aggressive and may not let you go quietly. If you are new to Texas here is what you need to consider when making the breakup with California official.
Continue Reading Leaving California for Texas May Cause State Income Tax Headaches
How failing to file franchise tax returns causes personal liability
A central purpose for creating a corporation or an LLC is for asset protection. These companies shield owners from liabilities that accrue during the life of the business.
In Texas, failure to file your franchise tax returns or pay your franchise tax liability will cause you to lose your limited liability protection.
The Texas Tax
How to do a Voluntary Disclosure with the Texas Comptroller
Are you worried about a failure to file a franchise tax or sales tax return in Texas?
Worried that you could go to jail?
Worried that the State of Texas is going to hit you with horrible penalties and interest?
There is a way to avoid these problems and reduce your liablity.
The answer is