I have a llc registered in New York. It is a family owned business started in 2011. My son like all my nephews own a small 2% of the stock. But play no active role in the business. He moved to Texas this year. Would his ownership of stock create nexus in Texas. Would all the sales across the country be subject to the franchise tax or just the sales made in the state of Texas?
As best as I can tell, the state Comptroller says that your LLC would only be subject to the tax if it does business in Texas. So, if you previously determined that your LLC has not been doing business in Texas (i.e., the sales you reference were orders placed by telephone, internet or catalog and delivered by common carrier or USPS) then the mere change of residency by a 2% owner (your son) would not create nexus unless your son is an employee or acts as an agent of the company.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.