Texas Franchise Tax for Construction Companies: Texas has no state income tax, but Austin construction companies owe the Texas franchise tax on revenue above the filing threshold. Contractors can use the cost of goods sold method to calculate taxable margin, deducting direct labor, materials, and subcontractor costs. FinTruction structures your chart of accounts and job costing so those construction COGS deductions are captured cleanly and your franchise tax margin stays as low as the law permits.
City of Austin Permitting and Environmental Compliance: The City of Austin enforces specific permitting requirements, environmental regulations, and building code standards, and projects over the Edwards Aquifer recharge zone or in other sensitive areas can carry added documentation. Our financial reporting allocates permit costs, impact fees, and compliance expenses to the correct job so those costs never distort project margin.
Davis-Bacon Prevailing Wage on Federal Projects: Contractors on federally funded work in the Austin area must comply with the Davis-Bacon Act, paying prevailing wages by trade and filing certified payroll, while the City of Austin applies wage standards to certain municipal contracts. Our accounting team tracks applicable rates and prepares certified payroll reports that meet federal audit requirements.
Texas Property Code and Mechanic's Lien Rights: Contractors and subcontractors in Austin must follow the Texas Property Code to protect lien rights, which means sending proper notices within strict deadlines and keeping accurate records of contract amounts, payments received, and outstanding balances. FinTruction maintains project-level financial records that support lien filings and payment claims.
Texas Sales and Use Tax on Materials: Sales and use tax applies to construction materials purchased across Travis, Williamson, and Hays counties, with the taxable treatment depending on contract type and whether the work is a new structure or a repair. Proper documentation of taxable and exempt purchases matters, and we track that treatment inside your job costing workflows.