In the Lone Star State, all business entities must file annual reports. We will get into the nuts and bolts of what yearly reports are in Texas and how to submit them to remain in good standing with the state.
What Is a Texas Annual Report?
An annual report is a yearly document to provide the state with updated information about your business. In most states, it’s one report, but in Texas, it’s two documents.
The Texas annual report comprises:
- Franchise Tax Report
- Public Information Record (PIR)
Both are due on May 15th of every year.
Who Needs to File an Annual Report in Texas?
All corporations and limited liability companies (LLCs) in Texas must file a Franchise Tax Report and a Public Information Report.
Regardless of whether your corporation made any income, you are required to file a Franchise Tax Report yearly.
If your annualized total revenue is below the No Tax Due threshold, you don’t pay any tax. You simply file a No Tax Due report.
In 2022-2023, the No Tax Due threshold is $1,230,000.
A veteran-owned business doesn’t have to file any PIR and is exempt from Franchise Tax Reports for the first five years after business formation.
Texas Annual Report FAQs
How do I file an Annual Report for LLCs in Texas?
In Texas, you must file the Franchise Tax Report and PIR every year before the 15th of May.
A corporation is required to file an annual report the year after formation. And when you file, you calculate the revenue for the previous year.
For instance, if your corporation was formed in February 2021, you will not file a report until May 2022. And you calculate the annualized income for February to December 2021.
For most corporations, the annualized total income is less than the tax threshold, so they file a No Tax Due report.
This is the step-by-step process of how to submit your Texas annual report:
- Log into WebFile (Texas Comptroller Systems)
- Select WebFile/Pay franchise tax
- Enter the 11-digit taxpayer number for your corporation
- Choose “File a No Tax Due report”
- Select the reporting year
- Fill out the form
- Enter your annualized total revenue
- Fill out the remaining PIR fields
- Once you submit the report, a “Congratulations” page will appear
If your annualized total revenue exceeds the threshold, you must complete the Long Form or EZ computation form.
Is there a due date?
The Texas annual reports are due on the 15th of May every year.
You can file a franchise tax extension report on or before May 15th to have the deadline extended. Usually, the Comptroller grants the extension to LLCs that paid an extension fee. The deadline is then pushed back to the 15th of November of that year.
What information is required in the report?
The Franchise Tax Report contains the annualized total revenue of a company or the No Tax Due report if the income is below the threshold.
The Public Information Report contains the principal office street address of the corporation, the principal mailing address, and the registered agent’s name, address, and mailing address. Veteran-owned businesses are exempt from filing any PIR.
What happens if I don’t file?
If you don’t file the annual report, you will receive a Notice of Forfeiture.
You have to file the report within 45 days of receiving this notice or else:
- Your LLC becomes illegal in Texas
- Your LLC cannot sue or defend yourself in a Texas court
- The Comptroller removes the right of your LLC to conduct business
- LLC members become personally liable for taxes and debts to the state
- Your LLC cannot receive a contract or license from any state agency
Benefits of Using FastFilings Annual Report Service
When you file your Texas annual reports with FastFilings, you enjoy benefits like:
- We file your Franchise Tax Report and Public Information Record before the deadline
- We help you determine whether you have to pay any tax or file a No Tax Due report
- We remind you of all filing deadlines
- We help you submit your Public Information Report (PIR)
- We help your business get back in good standing with the state of Texas
Our annual reports experts can assist you with Texas annual report filing. Get started online today with FastFilings.