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.
On this page, you’ll learn about the following:
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.
- 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.
- 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.
- 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.
- 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.
- 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:
- Streamlining the mandatory processes & filing.
- Sending or receiving any documents.
- Reminding you about important dates of filing or payment of taxes.
- Simplifying the filing procedures.
- Avoid any penalties.
- Flexibility in working.
- 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.
Filing a Texas LLC annual report is an important part of operating a business in the state. This report provides important information about the LLC’s financial health, ownership, and other key details. It must be filed with the Texas Secretary of State every year by the LLC’s filing date. So, how fast can you fill out the Texas LLC annual report?
The answer to this question depends on several factors. First, you need to determine what information you need to include in the report. Generally, this will include the LLC’s name, address, contact information, principal place of business, registered agent, and registered office. You’ll also need to provide the LLC’s purpose, the names of the members, the name of the manager, and the name of the designated representative. Additionally, you’ll need to provide the LLC’s current income, assets, and liabilities.
Once you have all the information you need, filling out the Texas LLC annual report should be relatively quick and easy. Most reports can be filled out in just a few minutes, depending on the complexity of your LLC’s financials. If you’re short on time, there are services available that can help you fill out the report quickly and accurately.
Once you’ve completed the report, you’ll need to submit it to the Texas Secretary of State. This must be done either online or via mail. Online submissions typically take about 1-2 business days to process, while mail-in submissions may take up to 7-10 business days.
Finally, you’ll need to pay the filing fee. The fee is generally $300, but it may vary depending on the complexity of the LLC’s financials. Once the fee is paid, you’ll receive a confirmation that your Texas LLC annual report has been filed.
In summary, filling out the Texas LLC annual report can be done relatively quickly. Depending on the complexity of the LLC’s financials, the process can take anywhere from a few minutes to a few days. Additionally, there are services available that can help you fill out the report quickly and accurately. Once the report is completed, it must be filed with the Texas Secretary of State and the filing fee must be paid. Once the fee is paid, you’ll receive a confirmation that your LLC’s annual report has been filed.
FAQs
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.
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.
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.
The most important thing for filing an Annual Report is record keeping. Make sure that you document every other transaction well.
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.