If you are starting a new business it is worth researching the different kinds of Texas State taxes involved, so take a look at this section. Note: this section is meant to give general information, taxes are very complex and you need to consult with your accountant.

The TWC employer account number is used by the Texas Workforce Commission (TWC) in order track the employer's payment of State Unemployment Taxes.

As an employer you need to concerned with the following:

• Texas Unemployment Tax

Texas Unemployment Tax is payable to the Texas Workforce Commission (TWC). The tax is computed as a rate of wages paid to the employee. The unemployment tax is an expense to the employers only, i.e employees do not contribute to the payment of this tax. You must pay the Unemployment Tax if you have paid wages of $1,500 on any quarter, or if you have had at least one employee for twenty calendar weeks. Unemployment Tax is assessed on the first $9,000 of wages for each employee.

• Sales and Use Tax

As with many other states, the State of Texas imposes sales tax on most goods and services. If you are going to be selling/retailing a product or a service the chances are that you will be required to collect sales tax from you customers and pass these taxes on to the State of Texas. You will be acting as a tax collector for the State of Texas. In order to collect sales tax from your customer you must have a Sales Tax Permit. Like most other state, Texas has the following sales tax levels:

• State Sales Tax
• County Sales Tax
• City Sales
• Local Sales Tax

You need to consult with your accountant or the state in order to obtain the applicable sales tax rates for your particular geographic location and the type of service you are providing. If you sell or provide services to other business entities, i.e you are a wholesaler, you may not have to collect sales tax from your customers, in this case you need to obtain a resale certificate.

Use tax is the sales tax you have to pay the state when you purchase from a vendor, and the vendor does not charge you sales tax. If you obtain goods or services from vendors and the vendors do not charge you the applicable sales you need to report this tax as use tax to the state.

• Tangible Property Tax

Another type of tax imposed by counties, cities and school districts in the State of Texas is the tangible property tax. This tax relates to all tangible personal property used in a business and on inventory. This includes machinery, tools, appliances, equipment...
Property tax is based on its value as of 1st January and tax bills are sent out in October. A tax notice is sent out each year by the county tax assessors letting taxpayers know the assessed value of their property.

• Franchise Tax

Each Texas limited liability company or corporation doing business in Texas must pay franchise tax. This tax is paid on the greater of:

• Excise Taxes

Excise taxes are imposed on certain activities or items like petroleum products, tobacco, alcohol and a host of other things.