Tax Law (Questions About Taxes)/Manufacturer or Retailer



First off, thank you for taking your time to read my question and help me answer it!

I just started a business that manufacturers a few products. I selected manufacturing as my business classification.

I manufacture the products and then sell these for retail. I set up a single member LLC for this business.

After starting my business, I heard that manufacturers get taxed at a greater rate than businesses who only resell/retail. If this is the case, then I do know of a company that could manufacture these same products and I can just resell them.

I would like to remain a manufacturer though since I could make more money, but if I have to pay higher taxes, it won't be worth it.

Question: Do manufacturers pay more taxes than resellers/retailers? If so, what percentage more? The business is in Texas (no state income tax).

Please let me know. Hopefully I explained myself clearly!

Thank you

There is no difference on rates at federal level

Make 100 and uncle Obama will tax it. He does not care how you made it.   Retail or manufacturing

Maybe Texas has a special state rule. But that is the franchise tax. I think

Less familiar with Texas


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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


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