What entities are not subject to the revised franchise tax?
The revised franchise tax does not apply to: • sole proprietorships (except the tax does apply to single member LLCs filing as a sole proprietor for federal income tax purposes); • general partnerships directly and solely owned by natural persons (except the tax does apply to all limited liability partnerships); • entities exempt under Subchapter B of Chapter 171; and • passive entities (as defined under TTC 171.0003).