The following guidelines provide background information on the most common types of filings and the related exemptions in Texas.
In this state, charitable solicitation registration is not required, except for certain public safety and veterans’ organizations. Be sure to review other state registration and tax requirements and stay apprised of updates by visiting the applicable state agency’s website.
This state does not require organizations to post specific language when conducting charitable solicitations unless the organization is fundraising for public safety charities and veterans’ organizations.
Depending on the type and volume of activities an organization has in this state, the organization may need to register as an out-of-state business (sometimes called a “foreign business”) with the secretary of state or another state agency. An attorney can assist the organization in determining whether its connections with this state are significant enough to trigger the foreign business registration requirement. Examples of activities that might trigger this requirement include having employees physically located in the state, conducting programs in the state, and having an office in the state.
In this state, organizations that have received recognition of federal income tax exemption are also exempt from the state franchise tax. However, to receive this exemption, organizations must apply. The exemption is not automatic.
It is also important to consider whether applying for sales and use tax and property tax exemptions would be appropriate for your organization. More information about Texas tax exemptions, as well as a form application for exemption, are available on the Texas Comptroller’s website. An accountant or attorney can provide answers to specific questions regarding your organization’s eligibility for exemption.
Application for Exemption from Sales, Franchise and/or Hotel Taxes: https://www.comptroller.texas.gov/taxes/exemp-t/forms/
Application for Registration for a Foreign Nonprofit Corporation: https://www.sos.state.tx.us/corp/forms/302_boc.pdf
Frequently Asked Questions about Texas Franchise Tax: https://comptroller.texas.gov/taxes/franchise/faq/exemptio-ns.php
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