Texans, File your Franchise Tax Reports!

If you’ve got a Texas LLC or Corporation, you know that you don’t have anything to file at the Secretary of State each year. But that doesn’t mean you don’t have any responsibilities. The Texas Franchise Tax Board had a return and a report that you must file each year, to keep your company in good standing. If you don’t file it your company can be suspended, and eventually dissolved by the state for failing to maintain up-to-date records.

Right now, Texas business owners who haven’t taken care of their reports are starting to receive Notices of Forfeiture from the Texas Franchise Tax Board. Fortunately, it’s not too hard to fix the problem and get back into good standing, but you do have to take some action.

If you’ve gotten a forfeiture notice, go to this link to begin squaring things away. Chances are you’ll need to do two things:

  1. File an Original Texas Franchise Tax report; and
  2. File a Periodic Information Report

You can file by paper, or you can go through the Franchise Tax Board’s website (although if you do, make sure you’re using a PC, cuz they aren’t Mac-friendly, or they’re not MY-Mac-friendly at least). Remember that you don’t have to pay any franchise tax if your business earnings are below $1 million.

If you need to look up your SIC (Standard Industry Classification) or NAICS (North American Industry Classification System) codes, click through the links to go those websites.

What you don’t want to do is leave things until your entity is formally revoked with the Secretary of State. That can cost you time, effort and money to get reinstated, all of which take away from your more important things, like growing your business.

Need help? Drop us an email, and we can get you pointed in the right direction.

There are many variables when you’re structuring a business. That’s why it’s hard to go through a quick-service website. Unless you talk to someone who’s got some knowledge and experience on both the tax and the legal side, it’s hard to know what you don’t know. And that can leave you vulnerable.

Got questions? Contact us! We’re here for you.

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