Texas LLC Annual Report – File an LLC Annual Report in Texas


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The objective of the annual report is three-fold. The annual report keeps the Government informed about all the updates, it communicates about all the modifications or changes, & it keeps the LLC members informed about the necessary taxes and costs. This article has all the information about Texas LLC annual report filing in Texas.

An annual report can be called an address book, as it features all the relevant addresses of the company & the members. This yearly report is a record of all the company’s activities in an entire year. It is also referred to as the Annual Franchise Tax Report because it helps in filing the franchise tax.

Contents of the Annual Report

Typically the annual report filed by an LLC in Texas (or any other business entity for that matter) will include all the information related to its business & members. The standard contents of the annual report  or the annual franchise tax report are

  • Office Address of the LLC
  • Names & Addresses of the Members & managers.
  • Identification Documents
  • Social Security numbers of the key members of LLC
  • The objective of the business of LLC
  • List of all the signatories of the LLC
  • Information of the registered agent, if any

Texas LLC Annual Report

An annual report filing is a mandatory requirement for all LLCs. An Annual report ensures that all the information provided by an LLC is accurate & updated. This information is essential for the State officials to ensure that all the companies pay taxes.

You might have stumbled upon all the articles that said the LLC annual reports are not required in Texas, or LLC reports are filed in a different format to a different authority.

So to clear the clutter, let’s just say that the LLC Annual report is called “the Franchise Tax Public Information Report” in Texas. This Franchise Tax Public Information report is filed with the office of Texas Comptroller of Public Accounts (Not with the Secretary of the State, as it is filed in any other state.) 

Does the State of Texas Require an Annual Report Filing?

The State of Texas does not have any Initial Report Requirements. But, it is mandatory to file the Texas annual report (known as the Franchise Tax Public Information Report) with the Texas Comptroller of Public Accounts. 

All the legal entities such as C Corporations, Limited Partnerships, Limited Liability Companies are bound to file the Franchise Tax report along with the Franchise Tax. 

Annual Report Deadline

The Franchise Tax Public Information Report must be filed by May 15 each year. Every LLC is bound by this rule, except an LLC in its first calendar year of the business. For the first calendar year of business, an LLC will file the annual report next year. E.g., the LLC, which was formed in the month of January in 2021, will be submitting the annual report on May 15, 2022.   

Penalties for Non-filing or late filing

Filing the Franchise Tax report is essential for every type of entity in the State of Texas, so much so that there can be penalties for non-filing the Franchise Tax Public Information Report. The non-filing penalty or the late filing penalties of the annual report with the Comptroller is $50. Most States charge additional penalties in case of a lapse in a filing. Texas Authorities have the power to dissolve the LLC in certain circumstances, where the annual report has not been filed frequently. 

Why Do LLCs Have to File the Annual Report?

Some of the states are not required to file this yearly report commonly known as the Annual Report. However, there are some reasons why states should file an LLC Annual Report. Here are some reasons,

To Maintain the Accuracy of the Information

An annual report filed by the LLC has all the updated information about its official addresses & the names or addresses of all its officials. This updated information allows the State authorities to track down any LLC when communicating.

To provide the Correct Correspondence

Many times, any creditor or other entity willing to transact with the LLC requires the correct correspondence address. If this information (which can only be modified with the help of an annual report) is not updated every year, such entities will not be able to communicate with them.

To Notify the Government About All the Significant Changes

If you have changed your main business address or had new business appointments of managers or members, the annual report notifies the State Government Entities about it. So, the next time someone questions a newer reform that you have introduced in your LLC, you will be saved because you had submitted the information with the Government.

To Provide an Activity Log of an LLC

The Annual report is like an activity log of the LLC. It brings on record; all the transactions, new associations, appointments, etc. & keeps those records intact for all future references.

To Help You With the One-time Filing of Taxes

The annual report is an excellent means to keep you on your toes in case of your dues payment. Every LLC must pay the taxes through the annual report filing. By filing the report on time, the LLC can manage the exemptions & can avoid penalties imposed by the Government. 

To Enable the State to Track the Payments

The government authorities use all the information filed through the annual report, for tracking the payment of State Taxes.

How to File a Texas LLC Annual Report

As mentioned earlier, the Texas Annual Report or the Annual Franchise Tax Report has to be filed with the office of the Texas Comptroller of Public Accounts. It has to be filed by May 15 every year, or an LLC will have to pay the fine of $50. There are two ways to file the Annual Report, online and by mail.

Steps to File Texas LLC Annual Report Online

Time needed: 5 minutes.

To file the report online LLCs have to register with the Texas Comptroller of Publish Accounts official website. If the individual or the LLC is already registered then by signing in to the portal one can start filing the yearly LLC report. Here are the steps to file LLC annual report in Texas online.

  1. Visit the Texas Comptroller Official Website (eSystem/Web file)

    Your first step to filing an Annual Franchise Report in Texas is to visit the Texas Comptroller of Public Accounts site to create an account or sign in to the portal.
    texas-comptroller

  2. Register or Create Your Profile

    If you are new to this portal then you have to create a profile here. To create your profile click on the ‘Create Profile’ button on the Home Page of the portal. You will get a form to fill up.
    texas-annual-report-online-form

  3. Fill Up The Form

    There are 4 sections in the online form. Firstly, provide user information such as name, email address, and phone number along with the user ID and unique password. In the second section, provide the security questions and add the answers. In the third section, read and ‘Accept’ the terms of use. Finally, in the last section, verify your email and phone number by accepting a one-time passcode.

  4. Log In and File

    As soon as profile creation will be completed and verification will be done, you can log in to the portal with your user ID and password. Proceed with the filing of the Annual Franchise Report online.

  5. Review and Pay

    The last step to filing the report is to review the information given in the Annual Report and make the required payment. Read the Instruction for filling the Annual Report carefully before you make the payment.

Filing Texas LLC Annual Report By Mail

To file the Annual Franchise Report in Texas by mail follow the below steps,

  • Go to Texas Comptroller Downloadable Forms page.
  • Get the Annual Franchise Report Form from the list of forms.
  • Download the form (.pdf) on your personal computer.
  • You need Adobe Reader installed to fill up the form.
  • Fill up the forms with the correct information and save it.
  • Print the forms and attach the supportive documents.
  • Write a paper check properly to make the payment. See the instructions!
  • Send the printed copies of the forms and documents to the address, Texas Comptroller of Public Accounts P.O. Box 13528, Capitol Station Austin, Texas 78711-3528.

Texas LLC Annual Report (Domestic & Foreign)

State Office:Texas Comptroller of Public Accounts P.O. Box 13528, Capitol Station Austin, Texas 78711-3528. Links to Website, Forms, File & Pay
Due Date:May 15 Every year
Filing Fee:The Franchise Tax Public Information Report filing does not incur any costs, which means the annual report filing is free in Texas. 
Penalty:The Texas Comptroller of Public accounts charges a $50 penalty on a report that is filed late, plus he charges a 5% penalty on the tax that is due. If the annual report is not filed even after 30 days past the due date, an additional 5% penalty is charged on an LLC.
Filing Method:Online Or by Mail
Forms:The form to file the Public Information Report can be found on the below link. Original signatures are not mandatory for the forms. Public Information Report
Important Information:Once a Domestic or Foreign Texas Limited Liability Company submits the Franchise Public Information Report along with the prescribed taxes to the Texas Comptroller of Public Accounts, there is no need for an LLC to file it again with the Texas Secretary Of State.

Seek the Help of a Registered Agent

Every State will have a different rule for filing the Annual Report. Usually, it is submitted every year, but it is submitted once in two years in some states. Some states require the filing of the report only once in ten years.

Not only the timing, the mode of filing, the proper addresses, exemptions, legality, annual report compliance, etc., have to be taken care of while paying the taxes or filing any reports with the State authorities. In many such scenarios, it is advised that an LLC appoints a Registered Agent to manage all this. Check out the best LLC service that offers all the services at an affordable price. An experienced agent is required for:

  1. Streamlining the mandatory processes & filing.
  2. Sending or receiving any documents.
  3. Reminding you about important dates of filing or payment of taxes. 
  4. Simplifying the filing procedures.
  5. Avoid any penalties.
  6. Flexibility in working.
  7. Maintaining Privacy (as it keeps your personal records off the public record)

You can read more about a Texas Registered Agent here. 

How Fast Can I Fill Texas LLC Annual Report

Annual LLC franchise tax report for Texas LLC must be filed on or before May 15 each year. The LLCs formed in the same calender year are exempted from filing it.

Getting your Texas LLC annual report completed in five days or less isn’t impossible, but it will require a lot of attention to detail. Here are a few tips to help you get there on time.

The first thing you need to do is create a profile. The Comptroller’s site is known as WebFile, and it combines the required forms into a streamlined package. Once you have the information, it’s a matter of filling out the form as quickly as possible. You can choose a mail-in option, or a fax-in option. You can also change your mailing address. It’s best to have an address that matches your Public Information Report, but you don’t have to have your Certificate of Formation address.

The Comptroller’s website also includes a number of frequently asked questions about Combined Reporting. Here’s a quick rundown: Combined Reporting is a way for companies to file a single Franchise Tax Report, instead of having to file separate reports for each tax tier. It’s important to note that this option is only for Combined Groups, not individual entities. The Comptroller’s website also contains a FAQ section on Combined Reporting that includes information on Combined Groups, Tiered Partnerships, and other tax reporting schemes.

The other thing you might want to do is to learn about the Taxpayer ID Number. This is an 11-digit number that the Texas Comptroller’s office will assign to your business. This is similar to a Social Security number, and it will be used to track your tax liabilities. You can get your Taxpayer ID Number online or by contacting the Comptroller’s office.

The Texas Comptroller’s website also includes an online filing system, called WebFile. You can fill out your Franchise Tax Report on this site, and you can also change your mailing address. The Texas Comptroller will send you email reminders about your upcoming filing deadline. You can also use this site to file your Public Information Report.

The Texas Comptroller of Public Accounts website also includes a number of helpful tips about the filing process. The site is designed to help you find the right forms and make sure you fill them out properly. If you’re having trouble finding the form you need, you can also check out the Texas Taxable Entity Search.

You might also want to learn about the EZ Computation Report. This is a report that uses an alternative calculation method for companies with a Total Revenue of less than $10 million. This report should be filed before the company’s Total Revenue is passed to its upper tiers. The Comptroller’s website has more information on the EZ Computation Report and other Combined Reporting options. The site also contains a FAQ section that covers the EZ Computation Report.

You might also want to learn about filing the Texas LLC annual report. The Texas Comptroller is responsible for the state’s franchise tax, and every LLC must file a Franchise Tax Public Information Report each year. These reports are due by May 15 each year. If you don’t file, you will be subject to a $50 penalty.

FAQs

Is it essential to file an Annual Report?

Yes, an annual report is essential for every business entity in most states. Some states also ask to file biennial or decennial reports to be filed.

What are the contents of the Annual Report?

A Yearly Business Report or the annual report typically incorporates the address of the business, names & addresses of the members, a list of all the signatories, SSN of the members, & details of the registered agent.

Why is hiring a Registered Agent necessary in filing the Annual Report?

A Registered Agent is well-aware of all the filing requirements, annual report filing fee, & overall Annual Report compliance. The knowledge & proficiency of the registered agent allows the smooth filing of reports & other fees.

What do I have to do for the annual business report preparation?

The most important thing for filing an Annual Report is record keeping. Make sure that you document every other transaction well.

Do the filing fees change as per the types of companies?

Yes, the fees may vary depending on the type of entity or the type of legal entity you are representing.

In Conclusion

An LLC has to file many types of reports, such as Application for Reinstatement, Periodic Report of a limited partnership (usually filed by the exempt nonprofit organization), etc., which are required depending on the type of entity. The Annual Report is mandatory irrespective of the entity type. It requires compliance across entities.

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