2019 Small Business Resource Guide 2019 Small Business Resource Guide | Page 34

L E GA L Employment Taxes When you have employees, you as the employer have certain employment tax responsibilities that you must pay and forms you must file. Employment taxes include the following: • Social security and Medicare taxes • Federal income tax withholding • Federal unemployment (FUTA) tax Property Taxes Business Tax Requirements Tarrant Appraisal District Texas Comptroller of Accounts 2500 Handley-Ederville Road Fort Worth, TX 76118-6909 (817) 284-0024 Dallas Northeast 9221 LBJ Freeway, Suite 100 Dallas, Texas 75243-3429 972-792-5800 Dallas Southwest 400 South Zang Blvd., Suite 900 Dallas, Texas 75208-6644 214-944-2200 www.comptroller.texas.gov For tax-related questions call 1-800-252-5555 The Tarrant Appraisal District is responsible for local property tax appraisal and exemption administration for seventy-three jurisdictions or taxing units in the county. Each taxing unit, such as the county, a city, school district, municipal utility district, etc., sets its own tax rate to generate revenue to pay for such things as police and fire protection, public schools, road and street maintenance, courts, water and sewer systems, and other public services. Property appraisals are determined by the appraisal district and used by the taxing units to calculate and allocate the annual tax burden. It is important for business owners to prepare for property taxes for their commercial business location. Sales and Use Tax Permit Every sole proprietorship, partnership, corporation or other organization going into business should call the Office of the State Comptroller to determine if a Sales and Use Tax Permit is required for the product you sell, rent, lease or for the service you render. There is no fee for a sales and use tax permit; however, you may be required to furnish a bond or security. The Texas Comptroller of Public Accounts also has Tax Exempt Information. Under Texas law, the purchaser of a business is responsible for any sales tax owed by the previous owners. Additionally, the law requires a purchaser to withhold from the purchase price any amount needed to cover a sales tax debt. You should have the following information before going to the state comptroller: 1. Social Security Number (SSN): a) Your SSN and address if you own the business, or b) Each partner’s SSN if the business is a partnership, or c) SSN and address for each officer and director if the business is a corporation. 2. The Federal Employer Identification Number (EIN) assigned by the Internal Revenue Service if you hire employees. 34 3. Corporate Charter or Certificate of Authority Number assigned to your corporation by the Texas Secretary of State and the effective date of permission to do business in Texas, if the business is a corporation. Penalty for operating without a Sales and Use Tax Permit Anyone who operates a retail business in Texas without a Sales and Use Tax Permit or after a permit has been suspended, and each officer of any corporation who operates a business without a Sales and Use Tax Permit or with a suspended permit, is guilty of a crime. The fine is up to $500 a day for each day the business operates without a permit. Texas Franchise Tax The Texas Franchise Tax is a privilege tax imposed on each taxable entity chartered/organized in Texas or doing business in Texas. The Texas Franchise Tax applies to partnerships (general, limited and limited liability), corporations, limited liability companies, business trusts, professional associations, business associations, joint ventures and other legal entities. 35