SBA and NTSBDC have additional veteran resources. We partner with UTAVBOC who makes available training, resources, and connections for Veteran Entrepreneurs, such as Boots to Business. Paris SBDC would love to be of assistance in your business start and recognizing your Veteran Owned Business. See info below for frequent info sought:
New Veteran-Owned Businesses and Texas Franchise Tax
A qualifying new veteran-owned business is not subject to franchise tax for its initial five-year period, but must file Form 05-163, Texas Franchise Tax No Tax Due Report (PDF), for each of those years. For more information, see Texas Tax Code Section 171.0005 and Rule 3.574, Margin: New Veteran-Owned Businesses.
To be considered a new veteran-owned business, an entity must:
A qualifying new veteran-owned business is not subject to franchise tax for its initial five-year period, but must file Form 05-163, Texas Franchise Tax No Tax Due Report (PDF), for each of those years. For more information, see Texas Tax Code Section Section 171.0005, Definition of New Veteran-Owned BusinessExternal Link: undefined and Rule 3.574, Margin:
To be considered a new veteran-owned business, an entity must:
- be formed or organized in Texas either
- on or after Jan. 1, 2016, and before Jan. 1, 2020; or
- on or after Jan. 1, 2022, and before Jan. 1, 2026;
- be 100 percent owned by a natural person or persons, with each owner being an honorably discharged veteran from a branch of the U. S. Armed Services; and
- provide a Texas Veterans Commission (TVC) issued Letter of Verification of Veteran’s Honorable Discharge for each owner.
The Comptroller’s office verifies this information. If during the initial five-year period, a new veteran-owned business no longer meets the above criteria, the business:
- must notify the Comptroller’s office; and
- becomes subject to franchise tax.
Verification Process for a New Veteran-Owned Business
For your new veteran-owned business to qualify for the five-year franchise tax exemption, you must complete three steps. Here are the steps to follow:
Entrepreneurs, then “Veteran Verification Letter”
To receive a Letter of Verification of Veteran’s Honorable Discharge (which will include a unique alpha-numeric identification code), each veteran-owner must email a request, along with their Department of Defense Form 214 (DD214), to the TVC at sb1049@tvc.texas.gov. Please block out the Social Security number on the DD214 before emailing.
Each emailed request must include:
- the date of the request
- the veteran’s:
- first name, middle initial, last name;
- mailing address;
- city, state, ZIP code;
- telephone number;
- the following statement: “In accordance with the verification provision of Senate Bill 1049 I am hereby requesting verification of my status as a Veteran of the United States Military.”
- the veteran’s signature
Step 2 – Complete Comptroller Form 05-904
Link to certify as a VOSB or SDVOSB https://www.va.gov/osdbu/
CVE certification if interested, not necessary unless seeking to do business with government entities or the VA.
Contact the ParisSBDC here.
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