Which NAICS Code to use when filing TX franchise tax with LLC?

Question

Which NAICS code is used when filing the TX franchise tax annual report if the LLC only invests in multifamily\apartment syndication deals? These syndication deals are SEC compliant securities. Haven't received any distributions yet because it's a somewhat new entity.

The LLC doesn't actually own the property or manage any leases. It's just an entity that passively invests.

Ronald Rohde · Answer

The NAICS code is just informational, so pick the closest RE category that you like.

Basit Siddiqi · Answer

I agree with Ronald - The NAICS code is mostly informational.

It is used by the states to tally up how many businesses are within a specific industry.
They also use it to see if your income/expenses are within industry standards. If it is not - it can be a potential audit flag.

Michael Dang · Answer

Thanks! @Ronald Rohde

Which NAICS Code to use when filing TX franchise tax with LLC?

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