The Comptroller’s August 2009 Tax Policy News Issues Franchise Tax Policy Concerning Management Companies


Under the revised franchise tax based on margin, entities that qualify as “management companies” are permitted to exclude certain reimbursements that it receives from its clients from its Total Revenue. The term “management company” is defined in Texas Tax Code § 171.0001(11) as “a corporation, limited liability company, or other limited liability entity that conducts all [...]