If you list a company that is not a Texas company, you can leave the TX SOS File # box blank. If you are unable to file using Webfile, use our downloadable .PDF reports, designed to work with the free Adobe Reader. #2. There you have it, everything you need to know about Texass reporting requirements. Your Texas LLC may also be responsible for other state taxes, such as sales tax and other taxes. Remember, your Franchise Tax Reports are due by May 15th every year, At the end of the year, calculate your LLCs annualized total revenue to determine if you have a franchise tax liability, If you dont have a franchise tax liability, you still have to, If you do have to pay, determine whether you want your LLC to be taxed on margin or taxed using the EZ Computation method (if your LLC qualifies), If a Single-Member LLC owns rental properties, then the business activity is reported on, If the Single-Member LLC sells a rental property, then line 17 from. Within this letter, youll find a bunch of different numbers. The Texas Comptrollers office will mail your LLC a Welcome Letter within a few weeks of your LLC being approved. All LLCs formed in Texas (or doing business in Texas) are subject to the franchise tax. This doesnt apply. For example, if you change your registered agent, or your current agent resigns, youll need to keep the state informed so they can update their contact information. The intuitive drag&drop interface makes it easy to include or move fields. are exempt from paying any franchise tax for 5 years (from the date of formation), but dont have to file a Public Information Report (PIR), The Long Form report is needed by LLCs that dont qualify for the EZ Computation Report; LLCs with more than $20 million in annualized total revenue, This report can be filed online or by mail, Additional reports may be required; please speak with your accountant, A Public Information Report (05-102) must also be completed (online or by mail), Look for 05-158-A and 05-158-B, Franchise Tax Report and download the PDF, Additional forms may be required (depending on your situation), If filing by mail, make sure to send the Comptroller an original Long Form with original signatures (as well as any required additional reports). In Texas, an LLC's annual report is commonly referred to as the Franchise Tax Public Information Report. Step 2:If you see your LLC listed below, click File and Pay. Each LLC must submit this filing to the Texas Comptroller every year to keep their information current. P. O. Were so happy we could help :) Yes, correct, youd be filing the No Tax Due Report. Note: The rule above applies only to LLCs that dont have to pay Franchise Tax by Electronic Fund Transfers (EFT). If your LLC owns any other companies, enter them here. Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. This report must be signed to satisfy franchise tax requirements. Single-member LLC warning: You probably know that one-person LLCs and husband-wife LLCs, both called single-member LLC are exempt from IRS reporting. Once you have entered the webfile number, you will see a list of returns that you need to file. Domestic non-profit corporations must enter all officers. A Federal Tax ID Number is also known as: You may see notes about Texas passive entities not having to file any No Tax Due returns. information relating to any transaction, series of transactions, or to the account including costs, charges and (this is what happens after you form an LLC in Texas and its approved by the Secretary of State). Then review your information for accuracy and check for typos. Your Texas veteran LLC must have been formed on or after 1/1/2022 and before 12/31/2025 and qualified with the Texas Secretary of State and the Texas Comptrollers office. Thanks so much for this. They need to keep updated records on thousands of businesses so that they can effectively reach out with any important tax or legal communications down the road. Lets say your Texas LLC is approved on August 5th 2022. Initially, the Comptroller uses the address of your. Please consult a licensed professional if you have legal or tax questions. This is exactly what I was looking for and needed to complete my form. Texas LLCs file a Public Information Report (Form 05-102) instead. (per 12-month period on which the margin is based). Unsure how to go about it? Our favorite company, Northwest, is forming LLCs for $39 (60% off!) If your LLC doesnt take care of its franchise tax obligation within that 45-day grace period, your LLC will forfeit its right to do business in the state and the above penalties will apply. Were not driven by profit, but rather by our mission to empower entrepreneurs. If your LLCs Total Revenue is under the No Tax Due Threshold of $1,230,000, then yes, you need to file a Texas Franchise Tax Report, but you dont have to pay a tax. Select your LLCs Report Year. If you owe franchise tax and you leave your SIC code blank, you wont get a reduced tax rate of 0.375%; instead youll be charged the 0.75% rate. Texas law requires that the Comptrollers Office gives your LLC at least 45 days grace period. Hi Susan! For report year 2016 only, the Texas Comptroller is allowing taxpayers to elect paper filing. Let's say your Texas LLC is approved on August 5th 2021. While you are exempt from paying any franchise tax, you still have to file a No Tax Due Report every year. So your LLC franchise tax reports are due the following year, by May 15th 2022. Its recommended that you work with an accountant in order to calculate your franchise tax liability and determine which filing method is best. [1] The failure to timely file a motion for rehearing may result in adverse legal consequences. Owned Entity(s): Enter information for each (subsidiary) corporation, LLC, LP, PA or financial institution, if any, in which this entity owns an interest of 10 percent or more. You LLC must answer yes to at least one of the qualifying questions in order to file a No Tax Due Report. After youve logged in, select Pay Franchise Tax and enter your LLCs taxpayer number (which you can find on your Welcome Letter from the Comptrollers office). Your LLCs accounting year end date will be 12/31 of the prior year. The PIR must be filed every year with your franchise tax report, The PIR is due at the same time as your franchise tax report, The PIR keeps your LLCs contact info updated with the Comptroller, This includes the LLCs address as well as the LLCs members, managers, officers, and/or directors name and address(es) information in your PIR will appear on the, This includes LLC member/manager information and their address, If you dont want your home address on public record, you can use a PO box, a mailbox rental, or the address of your, click File a Public/Ownership Information Report to begin, FEIN (Federal Employer Identification Number), owns another taxable entity which is treated as a Partnership or an S Corporation; or, is a Multi-Member LLC that is owned by another taxable entity, in a Tiered Partnership election, the lower-tier entity cant pass its margin deduction (COGS, compensation, 70% of revenue, or $1 million) to the upper-tier entity, a newly-formed Veteran-owned LLC cannot elect Tiered Partnership treatment. So this section doesnt apply to you. Should I select Director? NOTE: Youll see a question about a passive entity. Your Welcome Letter was sent to your LLCs Registered Agent address about 2-3 weeks after your LLC was approved. In this section, you will enter your LLCs Member(s) (the owners) and Manager(s), if applicable. As per the Texas Tax Code: Section 171.002, the franchise tax rate is either: 0.375% of taxable margin for wholesalers and retailers, 0.75% of taxable margin for all other companies, or 0.331% of total revenue for companies using the EZ computation method. In this case, they have to file the reports below (and pay franchise tax): For more information on how to file the forms listed above, please see the Long Form or EZ Computation section below. The mailing address is subject to change. Never even heard of it? Not only will they form your business in the first place, but theyll also manage ongoing requirements like ongoing report filing. Box 149348 Austin, TX 78714-9348 Required Applications: The companys accountant determines the COGS deduction to be $1,875,000, resulting in a Gross Margin of $2,625,000. Deal alert! For more information, please see our Texas LLC taxes page. They are different numbers. This is how the state updates your LLCs record with the most recent information. It will be sent to your Registered Agents address. Member-Managed LLC vs. Manager-Managed LLC, on your stamped and approved Certificate of Formation. Technically, the No Tax Due Report includes the Public Information Report. Total Revenue comes from your LLCs federal income tax return. Texas Comptroller of Public Accounts . The fee is $15 in both cases. For more information, please see the Texas Comptrollers franchise tax extensions page. Most filers will leave the Term expiration date box blank as it usually doesnt apply. The EZ Computation Report is an alternative option (as opposed to the Long Form) for LLCs that are above the No Tax Due Threshold, but their annualized total revenue is $20 million or less, The EZ Computation Report can be filed online or by mail, Additional reports may be required; please speak with an accountant, A Public Information Report (05-102) must also be completed, 0.331% of an LLCs Total Revenue in Texas, 20% percent of LLCs that owe Franchise Tax use the EZ Computation Report, the EZ Computation Report is the 2nd most popular method to calculate the franchise tax, behind using the Long Form and COGS deduction, your LLC is not eligible to take any credits, including the, your LLC is not eligible to take any margin deduction (COGS, compensation, 70% of revenue, or $1 million), Look for 05-169, EZ Computation Report and download the PDF, If filing by mail, make sure to send the Comptroller an original EZ Computation Report with original signatures. The first WebFile Number youll get will start with FQ. Texas corporations file number from the Texas Secretary of State. If you receive a no obligation message, youll need to call the Comptrollers Office. The franchise report fees are as follows: 0.575 percent for companies with $10 million or less in annual revenue and filing via the E-Z Computation form Texas nonprofit and foreign companies: $5 Amending a Texas Franchise tax return in Lacerte by Intuit 11Updated July 19, 2022 Second extension filing for Texas Franchise Tax in Lacerte by Intuit 8Updated July 25, 2022 Common questions about Tennessee SMLLC franchise and excise tax returns in Lacerte by Intuit 1Updated September 22, 2022 Veteran-owned LLC: If you properly formed a Texas veteran LLC with the Secretary of State and its on file with the Comptrollers Office, youll select yes. If needed, that would have to be done with the Secretary of States office. Within about 2-3 weeks, youll receive a Welcome Letter from the Texas Comptroller. Yes. For general information, see the Franchise Tax Overview. A Tiered Partnership election (for Texas franchise tax purposes) applies to an LLC that is in a parent/child relationship, also referred to as parent/subsidiary relationship. Its similar to a census in that its purpose is to collect the necessary contact and structural information about each Texas business. What is the tax rate? Due: Annually by May 15 in the year following your first filing in Texas. As per the Texas Tax Code: Section 171.002, the franchise tax rate is either: 0.375% of taxable margin for wholesalers and retailers, 0.75% of taxable margin for all other companies, or 0.331% of total revenue for companies using the EZ computation method. The following businesses are exempt from franchise tax: A Texas LLC doesnt pay state income tax, but instead, has to file a Franchise Tax Report, as mentioned above. Note: If this is your 1st Franchise Tax Report, click the Assign Taxes/Fees button. You can find this number by doing a Texas Taxable Entity Search. So your LLC franchise tax reports are due the following year, by May 15th 2023. Select File a No Tax Due Information Report. a. As per the Texas Tax Code: Section 171.002, the franchise tax rate is either: Again, about 90% of Texas LLCs dont have to pay franchise tax. The Comptroller provides more information here: Cost of Goods Sold deduction), (more info: Texas Comptroller: FAQs on compensation). Full Name: Texas Franchise Tax Long Form (Form 05-158-A & Form 05-158-B). If an online extension payment is made, the taxable entity should NOT submit a paper Extension Request (Form 05-164). It doesnt matter if your LLC is a Single-Member LLC or a Multi-Member LLC. All LLCs must file a Texas Franchise tax report, even single-member LLCs. If you are unable to file using Webfile, use our downloadable .PDF reports, designed to work with the free Adobe Reader. Additionally, the Texas Comptroller will place your LLC not in good standing, and the LLC Members/Managers will become liable for any LLC taxes and filings due to the state. You might be thinking, that sounds like a pain. Texas doesnt require that your LLC file estimated tax reports or payments. Weve explained them below. The address doesnt have to be an actual office either. Deal alert! Their hours are 8am to 5pm Central Time, Monday through Friday. And remember, if at any point it seems overwhelming, youre not alone. Filing via WebFile is quicker and easier. In Texas, LLCs dont need to file initial reports. Your LLC was formed on June 15th 2022, and between June 15th and December 31st of that same year, your LLCs total revenue was $105,000. Note: The mailing address is subject to change. Texas Tax Code: Section 171.0002 (d) states: An entity that can file as a sole proprietorship for federal tax purposes is not a sole proprietorship for [Texas franchise tax] purposes. Instead, this state gathers all of the information it needs for your LLCs first year in business from your Certificate of Formation filing. You then take your Taxable Margin and multiply it by your Tax Rate. Tax Rates, Thresholds and Deduction LimitsItemAmountNo Tax Due Threshold$1,080,000Tax Rate (retail or wholesale)0.4875%Tax Rate (other than retail or wholesale)0.975%Compensation Deduction Limit$350,000. Introduction to Texas Single Member LLCs Texas Comptroller : Form: Public Information Report. Notes: Public information reports are due annually unless the organization has been granted exemption from the Texas Comptroller. General Information Letters and Private Letter Rulings, State Tax Automated Research (STAR) System, Weathering the Pandemic: Texas Industries and COVID-19, Chapter 313: Trading Tax Limitations for Development, Historically Underutilized Business (HUB), Vendor Performance Tracking System (VPTS), Texas Procurement and Contract Management Guide, Minnie Stevens Piper Foundation College Compendium. No worries at all. Form 05-167 is not for LLCs. Note: Calculating an LLCs Total Revenue for Combined Reporting and Tiered Partnerships are different. your LLC wont be granted a permit or license from any state agency. The Comptrollers online filing system is called WebFile. Follow this guide to a T and your LLC will be prepared to operate smoothly and in good standing long into the future. In some states, LLCs are also required to file initial reports. Texas Franchise Tax Reports for 2022 and Prior Years Additional Franchise Tax Forms Questionnaires for Franchise Tax Accountability Unincorporated Political Committee Statement Status Change or Closing or Reinstating a Business Certification of New Veteran-Owned Business Franchise tax report forms should be mailed to the following address: Update a Franchise Tax Account Complete the Franchise Tax Accountability Questionnaire Change a Business Address or Contact Information All Texas LLCs must file a Franchise Tax Report. Your No Tax Due (and PIR) have been successfully filed. Leave as-is or make changes if needed. Its for other entities. Their annualized total revenue is less than $1,230,000. The law requires all No Tax Due Reports originally due after Jan. 1, 2016 to be filed electronically. Texas Comptroller Contact Info If you have any questions about filing your LLC's "annual report" (No Tax Due & Public Information Report), you can contact the Texas Comptroller at 1-800-252-1381. General Information Letters and Private Letter Rulings, State Tax Automated Research (STAR) System, Weathering the Pandemic: Texas Industries and COVID-19, Chapter 313: Trading Tax Limitations for Development, Historically Underutilized Business (HUB), Vendor Performance Tracking System (VPTS), Texas Procurement and Contract Management Guide, Minnie Stevens Piper Foundation College Compendium, download and install the latest version of Adobe Reader, Reports Originally Due May 15, 2000 through May 15, 2007, Reports Originally Due January 1, 1992 through December 31, 1999, Reports Originally Due Prior to January 1, 1992, Credit Schedules for Reports Originally Due before January 1, 2008, 05-397, Unincorporated Political Committee Statement, 05-359, Request for Certificate of Account Status, 05-391, Tax Clearance Letter Request for Reinstatement, 05-904, Certification of New Veteran-Owned Business. Youre very welcome. This question largely comes down to personal preferences, but we do have some general insights. Matt Horwitz has been the leading expert on LLC education for the past decade. Non-Texas entities must enter all officers and directors that are required by the laws of the state or country of incorporation or organization. Texas Comptroller of Public Accounts P.O. One person may hold all offices. In the Officers, Directors, Managers section, can I just provide the first name in the Name sub-section, since the information will be public?