Selling a Texas business in one of the busiest markets in the country.
Texas has a huge number of established businesses and plenty of buyers moving into the state. That competition helps sellers, as long as the business is ready for a buyer's diligence.
Texas items to plan for
Texas has no state personal income tax, but a sale still has state specific steps.
Comptroller tax clearance
Under Texas law a buyer can be liable for a seller's unpaid state taxes unless the buyer withholds enough of the price or the seller provides a certificate of no tax due from the Comptroller. Request it early.
Franchise tax
Most Texas entities owe the state franchise tax. Buyers will check that filings are current, and a final report is part of winding down the selling entity.
TABC permits do not transfer
A Texas alcohol permit is not transferred to a buyer. The new owner applies for their own, which has to be timed with the closing so the business never goes dark.
This is a plain English overview of Texas rules, not tax or legal advice. Your CPA and attorney should confirm the specifics.
Across the Texas Triangle and beyond
Houston, Dallas Fort Worth, Austin and San Antonio cover most Texas deals, and the process runs online with visits as needed.
Texas and real estate licensing
Texas does not currently require a real estate license to broker the business portion of a sale. Property and lease assignments in a deal are handled by a Texas licensed real estate professional.
Texas sellers want to know.
Comptroller clearance and alcohol permits generate the most questions in Texas deals.
What is a certificate of no tax due in Texas?
It is a certificate from the Texas Comptroller showing the seller owes no state taxes it administers. Buyers ask for it because they can otherwise be held responsible for the seller's unpaid taxes.
Can a buyer take over my TABC permit?
No. Texas alcohol permits are not transferable, so the buyer applies for a new one. We coordinate the timing with the closing date.
Do you only work with large Texas companies?
No. I work with Main Street and lower middle market owners. If your business has steady profit and you want options, a conversation is worth having.
Ready for your next era?
Texas owners can book a confidential call to understand their value range and how to stand out to buyers.
