Texas Tax Code

§ 171.0002 — DEFINITION OF TAXABLE ENTITY

TX § 171.0002Title 2. STATE TAXATION · Part F. FRANCHISE TAX; CREDITS · Ch. 171. FRANCHISE TAX · Art. A. DEFINITIONS; TAX IMPOSED

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(a)Except as otherwise provided by this section, "taxable entity" means a partnership, limited liability partnership, corporation, banking corporation, savings and loan association, limited liability company, business trust, professional association, business association, joint venture, joint stock company, holding company, or other legal entity. The term includes a combined group. A joint venture does not include joint operating or co-ownership arrangements meeting the requirements of Treasury Regulation Section 1.761-2(a)(3) that elect out of federal partnership treatment as provided by Section 761(a), Internal Revenue Code.

(b)"Taxable entity" does not include:

(1)a sole proprietorship;

(2)a general partnership:

(A)the direct ownership of which is entirely composed of natural persons; and

(B)the liability of which is not limited under a statute of this state or another state, including by registration as a limited liability partnership;

…

Legislative history

Acts 2007, 80th Leg., R.S., Ch. 1282 (H.B. 3928), Sec. 2, eff. January 1, 2008. Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 45.02, eff. January 1, 2012. Acts 2023, 88th Leg., R.S., Ch. 768 (H.B. 4595), Sec. 20.002, eff. September 1, 2023.