A 2019 Federal return is needed to complete a 2020 Texas Franchise Tax Report. Freeman Law is a tax, white-collar, and litigation boutique law firm. A taxable entity, therefore, that became subject to franchise tax during calendar year 2013 had a 2014 annual report due on May 15, 2014. To end the franchise tax reporting responsibility of an unregistered entity (i.e., an entity not registered with the SOS) that is not or is no longer subject to franchise tax, the unregistered entity must do the following with the Texas Comptroller of Public Accounts: This will provide information required for the Comptrollers office to end the entitys franchise tax reporting responsibility, including. Vd1EPh Paying the estimate DOES NOT resolve your entitys tax reporting delinquency. For reports received more than 30 days past the deadline, the penalty jumps to 10%. See Tax Code Section 171.1014 and Rule 3.590 for more information on combined reporting. Franchise tax rates, thresholds and deduction limits vary by report year. Your WebFile number. An entity registered with the Texas Secretary of State (SOS) must satisfy all state tax filing requirements before it can reinstate, terminate, merge or convert its business. The following entities do not file or pay franchise tax: Franchise tax is based on a taxable entitys margin. The registered business location is at 400 N Loop 1604 E Ste 200, San Antonio, TX 78232. Franchise Tax Frequently Asked Questions page. Form 05-359, Request for Certificate of Account Status to Terminate a Taxable Entitys Existence in Texas, if needed to terminate the entity with the Secretary of State. Editable TX Comptroller 05-158-A 2020. The texas income tax has one tax bracket, with a maximum marginal income tax of 0.00% as of 2021. Note that taxpayers who elected to use the E-Z Computation Report or filed the No Tax Due Report may amend to the long form and elect to use the COGS or the compensation deduction. . 78731, How to Apply for a Texas Business License, How to Submit a Certificate of Correction, Temporary Credit for Business Loss Carryforwards, Research and Development Activities Credit, Certified Historic Structures Rehabilitation Credit, Texan Registered Agent LLC Privacy Policy, Sole Proprietorships (Except Single Member LLCs), General Partnerships Owned Directly by a Single Natural Person, Entities Exempt Under Tax Code Chapter 171, Subchapter B, Certain Grantor Trusts, Estates of Natural Persons & Escrows, Certain Qualified Real Estate Investment Trusts, Non Profit Self-Insurance Trust (Insurance Code Chapter 2212), Trusts Qualified Under IRS Code Section 401(a), Trusts Exempt Except Under IRS Code Section 501(c)(9), Dividends & Interests From Federal Obligations, Foreign Royalties & Dividends (IRS Code Sections 78 & 951-964), W-2 Wages & Cash Compensation to Directors/Owners/Partners/Employees, Benefits Provided to All Personnel to Extent Deductible for Income Tax Purposes. But when I type my name, it accepts it. What are the Texas franchise tax rates? This is because your businesss federal income tax extension is filed with the Internal Revenue Service (IRS), not with our office. For the 2020 report year, an entity, including a combined group, can file using the EZ Computation if it has annualized total revenue of $20 million or less. It will not accept the name of my company as it has the past 15 years. The Webfile number is a Personal Identification Number (PIN) or security code. The entity must file this certificate as part of the termination filing to end the entity's existence with the Secretary of State. \0 =@j(XQLwP#5 =yRH<80,fR[$;, Wb`N-^$1}!l5Ax|o |{\Nia When franchise tax reports are filed or payments are made, sometimes errors or omissions occur. The business is registered with Texas Comptroller of Public Accounts, with taxpayer number #32076115420, and permit start date on September 30, 2020. Mandalay Baseball and the Braves proposed to bring the franchise to town if Wilmington would build a $37 million, 6,000-seat stadium, necessitating a 2.5-cent property tax increase. It became subject to franchise tax on its registration date. 5900 Balcones Drive Suite 100 Austin,TX 78731 | (737) 277-4667, 2023 Independent Texas Registered Agent LLC. An amended report that results in a reduction of tax liability is a request for refund and must meet refund requirements. To determine if your nonprofit organization qualifies for an exemption from franchise tax reporting, please see our Exempt Organizations webpage. Businesses less than 12 months old will need to find their total revenuethen annualize itto determine their tax liability. TTC 171.206 says "the following information is confidential and may not be made open to public inspection: 1) information that is obtained from a record or other instrument that is required by this chapter to be filed with the comptroller." All other entities should report their executive board members and check the OTHER box. Since Texas Tax Code Section 171.001 imposes franchise tax on each taxable entity that is formed in or doing business in this state, if you have not filed an original franchise tax report for your entity, or the Comptrollers office could not process the filed report, we estimate the tax liability due. If youre already familiar with Texas franchise tax, know your LLCs annualized total revenue is less than $1,230,000, and just want to file your No Tax Due Report (and PIR), you can find simpler . 5,001 or more. Texas amends franchise tax nexus regulations. The Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas. hbbd``b`@ H@BH0d;5]$HqW total revenue minus cost of goods sold (COGS); total revenue minus $1 million (effective Jan. 1, 2014). Texas has no individual income tax, but it does levy a franchise tax of 0.375% on some wholesalers and retail businesses. %PDF-1.6 % Entities not registered with the Secretary of State must notify our office in writing of the last day business was conducted. You can find the appropriate tax rate on our Franchise Tax webpage in the Tax Rates, Thresholds and Deduction Limits section. (Paper forms not allowed for No Tax Due Information Report.) b>#O'|{ QK2I/b/ge^pZ7#)HpG5-0 Compensation Deduction Limit This is the annual limit per officer, director, owner, partner and employee to calculate the margin via the compensation deduction method. be 100% owned by a natural person (or persons), each of whom was honorably discharged from a branch of the Texas Franchise Tax: 2020 Rates, Thresholds, & Deduction Limits. 05 158 Texas Franchise Tax Annual Report 2022-2023 . The Lacerte tax program automatically produces the 05-102 for the following modules: (1040) Individual. The initial corporation franchise tax is $110. H%0 F$dR R0 qlXAP,("-L! 721 Smith Rd. If your business falls under the $1,230,000 revenue limit, then you don't owe any franchise tax. (214) 984-3410. freeman@freemanlaw.com. endstream endobj startxref Tax Rate (retail or wholesale) Qualifying retailers and wholesalers are entities primarily engaged in retail and/or wholesale trade. This forfeiture is essentially a loss of corporate liability protection: business owners will become liable for the debts of the business, and the entity will not be permitted to defend itself in a court of law. Our filing service ensures that your business doesnt miss this all-important deadline, and also helps everyone in your company to maintain their privacy. If the tax does apply, it can often be minimized by a close reading and application of the rules. March 16, 2020. TX, Use our video guide to understand why going digital is the only way to manage paperwork in 2020 and beyond. The Authorized Share Method. When an entity filed with the IRS, it used a calendar year accounting year end date of Dec. 31. Unless a taxable entity qualifies and chooses to file using the EZ computation, the tax base is the taxable entitys margin and is computed in one of the following ways: Total revenue is determined from revenue amounts reported for federal income tax minus statutory exclusions. Instead, to resolve the issue, contact the entity that reports your company's information on the combined group franchise tax report. Mifflintown, PA 17059. The entity that filed incorrectly should submit a letter with its name and taxpayer number stating that the report was filed in error and the entity will report with a combined group. Make adjustments to the sample. A foreign taxable entity with no physical presence in Texas now has nexus if, during any federal accounting period ending in 2019 or later, it has gross receipts from business done in Texas of $500,000 or more. A Texas entity registered with the SOS on Dec. 20, 2020. See Tax Code Section 171.1013 and Rule 3.589 for more information about compensation. endstream endobj 42 0 obj <> endobj 43 0 obj <> endobj 44 0 obj <>stream dividends and interest from federal obligations; foreign royalties and dividends under Internal Revenue Code Section 78 and Sections 951-964; W-2 wages and cash compensation paid to officers, directors, owners, partners and employees (including net distributive income to natural persons) for the 12-month period upon which the tax is based, subject to the inflation-adjusted per person. The 2020 report actually uses 2019 Federal numbers, but is labeled 2020 because it is filed during the 2020 calendar year. RESET FORM PRINT FORM Texas Franchise Tax No Tax Due Report 05-163 Rev.9-17/9 FILING REQUIREMENTS Tcode 13275 Final FinalFranchise Taxpayer number Report. The Texas Franchise Tax is an annual business privilege tax processed by the Texas Comptroller of Public Accounts. Learn about the no-tax-due threshold amounts for each report year by reading this question below: How much is the no-tax-due threshold amount? %%EOF Hly. If your business account is already listed, select the 11-digit taxpayer number next to your business name. . For Tax Year 2020 Only The required annual payment is the least of: 90% of your tax liability in 2020 100% of your actual liability for 2019 75% of your actual liability for 2018 For Tax Years Other Than 2020 These entities include: See Franchise Tax Rule 3.586 for a list of some activities considered to be doing business in Texas.. However, after passage of House Bill 1195 in the 87th Legislature, Regular Session, taxable entities that received certain COVID-related relief grants or had certain COVID-related relief loans forgiven by the federal government do not have to report those grant or loan proceeds as income on their 2021 franchise tax reports. The registered business location is at 417 Hawkins St, Fort Worth, TX 76105. Tax Rate (other than retail or wholesale) For most entities, this is the tax rate on its taxable margin. See Franchise Tax Extensions of Time to File for more information. When you hire Independent Texas to form your Texas company or serve as your registered agent, we keep your state correspondence organized, send you multiple reminders ahead of the franchise tax due date, and provide affordable franchise report filing service. Regardless of whether a business owes franchise tax, business owners are charged a $50 fee for submitting reports after the due date. . Austin, TX 78714-9348. Complete the report online OR download a paper form. Choose the level you believe appropriate. Each taxable entity that is legally formed as a corporation, limited liability company, professional association, limited partnership or financial institution files a public information report (PIR). The registered business location is at 5900 Balcones Dr Ste 100, Austin, TX 78731. The entity cannot file with an Aug. 31, 2011, accounting year end for the 2012 franchise tax report, because Aug. 31, 2011, is before the date the entity first became subject to the tax. When the accounting period upon which the franchise tax report is based is more or less than 12 months, a taxable entity must annualize its total revenue to determine its eligibility for the no-tax-due threshold and qualification for the E-Z Computation. To request and receive a valid franchise tax extension, you must timely Affected members of a Texas combined reporting group will need to recompute apportionment under the Comptroller's revised policy to determine the potential impact. Create a WebFile account and complete the Franchise Tax Questionnaire. To learn more about what to do when an entity's accounting year end date is before the date it becomes subject to the franchise tax, read this question below: What if the entity's normal accounting year end date is before the date it became responsible for franchise tax? 2020 and 2021 is $1,180,000. It is not a substitute for legal advice. Taxpayer Information Admin. Printing and scanning is no longer the best way to manage documents. The business is registered with Texas Comptroller of Public Accounts, with taxpayer number #32076264459, and permit start date on October 13, 2020. For an annual report, enter the day after the end date the entity reported on its previous years franchise tax report. Please have your 11-digit taxpayer number ready when you call. With advance tax planning, it is often possible to avoid the Texas franchise tax. This article will help you determine what return types you can e-file through Lacerte, and when you'll be able to start e-filing each return for tax year 2022. If tax is paid over 30 days after the due date, a 10 percent penalty is assessed. In Drake22, if. If you are unable to file using Webfile, use our downloadable .PDF reports, designed to work with the free Adobe Reader. The Comptroller's office has amended Rule 3.586, Margin: Nexus, for franchise tax reports due on or after Jan. 1, 2020. It contains relevant information to assist taxpayers with the proper and timely filing of Texas Franchise Reports for the 2020 report year. to elect to use the COGS or the compensation deduction. On its 2021 final franchise tax report, it will enter its accounting year begin date as 01/01/2021. types of organizations that qualify for exemption, types of tax exemptions for which an organization may qualify, Coronavirus Aid, Relief, and Economic Security (CARES) Act, Paycheck Protection Program (PPP) Flexibility Act of 2020. filing franchise tax reports or extension requests; requesting Certificates of Account Status to Reinstate or Terminate. If you're paying by mail, you'll need to send your payment to the Comptroller's office. It is worth noting that of the 46 states that have a personal income tax each has extended its April 15 due date (39 states with a July 15 . For example, an entity becoming subject to franchise tax on Nov. 15, 2013, filed a 2014 annual report due May 15, 2014, for the privilege period Nov. 15, 2013, through Dec. 31, 2014. to correct a mathematical or other error in a report; to change the method of computing margin; or. This is a popular choice among taxpayers who are not in manufacturing or service industries. An entity that is terminating this year entered the accounting year end date of 12/31/2020 on its 2021 annual franchise tax report. Franchise tax reports are due on May 15 each year. Home / Uncategorized / when is texas franchise tax due 2021. interservice rivalry japan hoi4. Sx,_p% @TO8`OKfiLmhsq)xt7A&{2MvK'0))4ZQj+yb/7ax[O] f>Iz]%=r>\VoQ'|"P3I|rP:$uD:LHQUE#le;@ TN&|Ea^|})IgD"F/ [3 For general information, see the Franchise Tax Overview. Each taxable entity must file a Franchise Tax Report (No Tax Due, EZ Computation or Long Form) and an Information Report (Public Information Report or Ownership Information Report). For the 2022 Franchise Tax Report (which is based on your 2021 tax year gross revenue) the tax rates are as follows: Revenue < $1.23M - No franchise tax due. For an annual report, generally an entity should enter the federal accounting year end date that ended in the calendar year before the calendar year in which the report is originally due. On its 2021 annual franchise tax report, the entity will enter its accounting year begin date as 01/01/2020. Determine which entities have sufficient contact with the state to subject them to the Texas franchise tax, and identify types of entities exempt from taxation. If May 15 falls on a weekend or holiday, the due date will be the next business day. To get started on the form, use the fill & sign online button or tick the preview image of the document. Timely means the request is received or postmarked on or before the due date of the original report. The annual franchise tax report is due May 15. Taxable entities that only sell services will not generally have a cost of goods sold deduction. While we are available Monday through Friday, 8 a.m.-5 p.m. Central Time, shorter wait times normally occur from 8-10 a.m. and 4-5 p.m. (1120S) S-Corporate. 2022 report year forms and instructions; 2021 report year forms and instructions; 2020 report year forms and instructions; 2019 report year forms and instructions; 2018 report year forms and instructions; 2017 report year forms and instructions Before you start: These availability dates apply to e-filed returns. 90 percent of the tax that will be due and payable with the current years report. For an out-of-state-formed entity, this may be the entitys Texas SOS registration date or the day it began operations in Texas. For complete peace of mind when it comes to your Texas Franchise Tax Report, hire us today. You can find additional information on our Add Webfile Access and Franchise Tax Help Links webpages. 2. Our office sends notices letting the taxpayer know that there is a problem with the account. To determine whether you should file Form 05-102, Texas Franchise Tax Public Information Report (PDF), or Form 05-167, Texas Franchise Tax Ownership Information Report (PDF), see this question below: Which entities file Form 05-102, Texas Franchise Tax Public Information Report (PDF), and which entities file Form 05-167, Texas Franchise Tax Ownership Information Report (PDF)? To annualize total revenue, divide total revenue by the number of days in the period upon which the report is based, then multiply the result by 365. The recent Sunstate Equipment Co., LLC vs. Comptroller of Public Accounts , No. hb```f`` (1065) A partnership that is not an LLC's file the 05-167. No other deduction method is allowed and any credits available for that report year are foregone. The registered business location is at 2119 Westheimer Rd Apt 1220, Houston, TX 77098. For a final report, enter the day after the end date the entity reported on its current years annual franchise tax report. You can cancel our franchise tax filing service at any time with one click in your online account. 17-0444 (Tex. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008, except as otherwise noted. Free shipping for many products! e:ETgurn'$5`wO%Sv0ettt00 TTC 171.354 states each taxable entity on which the franchise tax is imposed shall designate a resident of this state as the taxable entity's agent for the service of process. Compensation does not include 1099 labor or payroll taxes paid by the employer. 0 Complete, sign, print and send your tax documents easily with US Legal Forms. Franchise Tax Reasons We Send Courtesy or Statutory Notices, General Information Letters and Private Letter Rulings, State Tax Automated Research (STAR) System, Historically Underutilized Business (HUB), Vendor Performance Tracking System (VPTS), Texas Procurement and Contract Management Guide, Minnie Stevens Piper Foundation College Compendium, Franchise Tax Frequently Asked Questions (FAQs) Exemptions, General Rule 3.13 (c), Postmarks, Timely Filing of Reports, and Timely Payment of Taxes and Fees, Rule 3.584 (c)(5), Margin: Reports and Payments, Rule 3.585, Margin: Annual Report Extension, satisfy all filing requirements through the date it was no longer subject to the tax; and. In 2013, the entity will file with an accounting period Oct. 5, 2011, through Aug. 31, 2012, for the privilege period ending Dec. 31, 2013. This table provides business counts and employee numbers for all businesses defined by two-, three- and four-digit NAICS codes, which describe increasingly specific divisions of industry. You can enlist us to help you stay on top of due datesour registered agent service includes helpful reminders about your upcoming franchise tax report. 1 The . Also called a "privilege tax," this type of income tax is based on total business revenues exceeding $1.23 million in 2022 and 2023. what was patmos like when john was there 1 Accordingly, for any federal income tax accounting period ending in 2019 or later, a foreign (non . hb```b````e`Wbb@ !+'E.(cb:. G8&0(Pdg?|cetCYg$>H8fS}^`'O:[(WKqd~mj}x%[;?7qa-j7Q=2]C+/ dr_7qMk9/pq1`os@SZ6]iuC%=D8U!n{K5Z~M]^4Z which of the following is a procedural defense? Trusts should report their trustee information and not check any box (PARTNER or OTHER). If the Comptrollers office does not receive your franchise tax report (and payment, if you owe one) within 45 days of the deadline, they are required by law to forfeit your businesss right to transact business in Texas. . How to File. Our office prints this number on the reports and notices we mail to each business. Customer Service . Get started: Step 1: Go to WebFile. Thus, when the amount of tax due shown on these forms is less than $1,000, the entity files the report but does not owe any tax. The margin can be calculated in one of the following ways: Total revenue is calculated by taking revenue amounts reported for federal income tax and subtracting statutory exclusions. Generally, a taxpayer is required to report grant or forgiven loan proceeds as income. The above information is required by Section 171.203 of the Tax Code for each corporation or limited liability company that files a Texas Franchise Tax Report. NAICS Table. If the entity is a fiscal year end taxpayer that ceases business after its normal accounting year end, it must file both an annual and a final report. . See Rule 3.585 for additional information." 3 By contrast, no such limitation appears in the Report Year 2017 Texas Franchise Tax Report Information and Instructions. When the No Tax Due Report is filed online via WebFile, the Public Information Report is included with it. The Texas Secretary of State (SOS) maintains and updates Registered Agent and/or Office information. For more information about changing the registered agents name or office address, please contact the SOS at 512-463-5555 or visit the SOS website. The Texas Franchise Tax is complex, but were here to help. Any taxable entity that owes any amount of franchise tax where the tax was not remitted electronically is required to submit the payment form with a check or money order made payable to the Texas Comptroller. 05-163, No Tax Due Report - ANNUAL (PDF) or FINAL (PDF) 05-102 . Our Texas registered agent service includes free due date tracking and reminders, and you can add our Franchise Tax Report service to any of our other business services at checkout. But whether or not tax is owed, youll need to file a Texas Franchise Tax Report every year to keep your business in good standing. . As you can see, there are a variety of methods that can be used to calculate an entitys franchise tax for a particular year. If you are unable to file using Webfile, use our downloadable .PDF reports, designed to work with the free Adobe Reader. To qualify, an entity must have at least 50% of total revenue derived from those activities, less than 50% of total revenue from the sale of products it produces or from an affiliated entity, and the taxpayer does not provide retail or wholesale utilities (including telecommunications services, electricity, or gas). Learn more 2009 Texas Franchise Tax Report Information and. A Texas entity, terminating, converting or merging, must file its final tax report and pay any amount due in the year it plans to terminate, convert or merge. Youll be asked to select the reason your business doesnt owe tax (i.e. The following are the qualifying federal COVID-related relief programs: Yes. An entitys accounting period includes both its accounting year begin and end dates. See Franchise Tax Rule 3.584 (c) and (i), Margin: Reports and Payments. If you are not paying electronically, your payment will be considered timely if it is postmarked on or before the due date, or hand delivered to a local Comptroller's office during normal business hours on or before the due date. Keep in mind that in order for an extension request to be granted, it needs to be submitted or postmarked on or before the due date in question, and 90 percent of the tax due must be paid along with the extension request. This will result in a $0 tax due report. Go digital and save time with signNow, the best solution for electronic signatures.Use its powerful functionality with a simple-to-use intuitive interface to fill out 2021 form schedule online, e-sign them, and quickly share them without jumping tabs. Note filed timely means an entitys extension request is submitted electronically or mailed with a canceled postmark on or before the due date of the original report. If May 15 falls on a Saturday, Sunday or legal holiday, the next business day becomes the due date. when is texas franchise tax due 2021 Taxpayer is a newly established Texas Veteran Owned Business (must be pre-qualified). Long Form. West Texas Primary Purpose Inc. is a business operating in Odessa, Texas, in the county of Midland. Extensions are requested using Texas Form 05-164. If annualized total revenue is less than the no-tax-due threshold amount, then the taxable entity files Form 05-163, Texas Franchise Tax No Tax Due Report (PDF). We'll see you then! The Comptroller's office has amended Rule 3.586, Margin: Nexus, for franchise tax reports due on or after Jan. 1, 2020. Each member of a combined group must submit a separate PIR or OIR unless the member does not have nexus in Texas. Effective Dec. 29, 2019, the Texas Comptroller of Public Accounts amended the Texas Administrative Code to establish a "bright-line" nexus threshold for franchise tax purposes. Texas Comptroller Official Use Only VE/DE PIR IND Taxpayer is a Real Estate Investment Trust that meets the qualifications. Texas Nonprofits State Tax Overview - Updated April 29, 2020 - 8.00 AM - Admin, ExpressTaxExempt. On November 2, 2020, the Texas Comptroller of Public Accounts (Comptroller) filed proposed amendments (Proposed Amendments) with the Office of the Texas Secretary of State to incorporate numerous changes to apportionment rules surrounding the Texas franchise tax as contained within title 34 of the Texas Administrative Code (TAC) 3.591 (hereinafter referred to as Rule 3.591). 2020 Texas Franchise Tax Report Information and Instructions Form 05-908 (9-19) Topics covered in this booklet: . TTM6(Mof;&PP]gvvv[ESPyeLR>(QC'E.N*hEQ*w*Xe/r5=U 'V mH}}1:}D, W~oxr,).rW}M]V7.~'wwJ /z7o'{q;hU8?TKHcg,KD;I-N]J . The Comptroller uses this number to identify your entity for franchise and sales tax purposes. The annual report will cover the period from its beginning date through the entity's normal accounting year end. If you add our franchise tax compliance service at checkout and decide to go the DIY route later, thats fine too. Note: Due to Covid-19, the 2020 filing deadline for all franchise taxpayers has been extended to July 15. . To end its existence in its first year, an entity must satisfy franchise tax filing requirements prematurely. 2020; or on or after Jan. 1, 2022, and before Jan. 1, 2026. Franchise tax most frequently asked questions. Fill Out The Texas Franchise Tax No Tax Due Report - Texas Online And Print It Out For Free. An entity ending its existence that is not part of a combined group must file. Fortunately, these documents have been combined into one streamlined . The Texas Franchise Tax is levied annually by the Texas Comptroller on all taxable entities doing business in the state. Fortunately, the No Tax Due Threshold, currently set at $1,230,000, prevents most small companies (like LLCs) from having to pay any franchise tax. Its annualized revenue is $1,182,870 ($350,000 divided by 108 days multiplied by 365 days). No Tax Due Threshold Entities that report total revenue of less than $1,180,000 are allowed to automatically file a No Tax Due Report (Form 05-163). Our firm is where clients turn when the stakes are high and the issues are complex. An out-of-state-formed entity registers with the SOS July 31, 2020, but it sent employees to Texas on June 19, 2020, to submit bids for the new construction contracts it won. This will be a zero return. An out-of-state entity uses a calendar year accounting period of Dec. 31 for reporting with the Internal Revenue Service (IRS). A taxable entity will owe no tax based on the following criteria. Mandatory electronic payers that properly secured a first extension may request a second extension on or before Aug . The margins threshold is subject to change each year. the date it is or was no longer subject to the tax. . RESET FORM 05-102 Rev.9-15/33 PRINT FORM Texas Franchise Tax Public Information Report Tcode 13196 Franchise Professional Associations PA and Financial. limited liability companies (LLCs), including series LLCs; partnerships (general, limited and limited liability); sole proprietorships (except for single member LLCs); general partnerships when direct ownership is composed entirely of natural persons (except for limited liability partnerships); entities exempt under Tax Code Chapter 171, Subchapter B; certain grantor trusts, estates of natural persons and escrows; real estate mortgage investment conduits and certain qualified real estate investment trusts; a nonprofit self-insurance trust created under Insurance Code Chapter 2212; a trust qualified under Internal Revenue Code Section 401(a); a trust exempt under Internal Revenue Code Section 501(c)(9); or.