Texas Franchise Tax Report Service & Filing Instructions
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All Texas corporations, LLCs, LPs, and LLPs must file an Annual Franchise Tax Report. Nonprofits must also file a tax report – unless granted exemption from the IRS. These reports must be submitted to the Texas Comptroller of Public Accounts each year. Below, you’ll find a set of instructions for how to file the Texas Annual Franchise Tax Report yourself. We include due dates, filing fees, required information, and answers to common filing questions.
Need to file in another state? Visit our State-by-State Annual Report Guide.
How to File Your Texas Franchise Tax Report
To successfully file your Texas Franchise Tax Report, you’ll need to complete these steps:
- Determine your due date and filing fees.
- Complete the report online OR download a paper form. (Paper forms not allowed for No Tax Due Information Report.)
- Submit your report to the Texas Comptroller of Public Accounts.
Texas Franchise Tax Report Due Dates and Fees
The tax rate for your Texas Franchise Tax Report will be determined by your business’s total revenue and/or the type of business you own. Most businesses won’t owe any taxes – YAY! However, you’ll still be required to file a tax return. The chart below breaks down the tax rates and necessary forms into an easy-to-read guide.
|All Businesses||$1,230,000 OR less||No Tax Due||Texas Franchise Tax No Tax Due Report (05-163)|
|All Businesses||Greater than $1,230,000 but less than $20 million||0.331% of your total revenue||EZ Computation Report (05-169)|
|Retail or Wholesale||Greater than $20 million||0.375% of your total revenue||Texas Franchise Tax Report (05-158-A) – Long Form|
|Businesses other than retail or wholesale||Greater than $20 million||0.75% of your total revenue||Texas Franchise Tax Report (05-158-A) – Long Form|
No matter which form you file, your Texas Franchise Tax Report is due May 15th each year. (If May 15th falls on a weekend, the due date will be the following business day.) The No Tax Due Information Report must be filed online. The other reports may be filed online or by mail. Online filings will be charged a $1 service fee.
Filing late? Texas will asses a $50 penalty fee for all reports filed late. If your tax payment is 1 – 30 days late, you’ll be charged 5% of your total tax due. If your tax payment is over 30 days late, you’ll be charged an additional 10% of your total tax due.
Filing Your Texas Annual Franchise Tax Report
Whether filing online or by mail, you’ll first need to visit the Texas Comptroller website. Since the majority of businesses file the No Tax Due Information Report, we’ll focus on how to file this report, which must be filed online. If your business earns over $1.23 million in revenue per year, you can file online or by mail, but the process will be a bit more complicated and might require assistance from an attorney or CPA.
- On the state website, go to the Franchise Tax page.
- If you wish to file online, click “webfile eSystems Login.” If you wish you to file by mail, click “Forms.”
To File Online:
- Enter your username and password. You can create an account by clicking “Sign Up.”
- Once you’re successfully logged in, click “WebFile/Pay Taxes and Fees.”
- If your taxpayer account is already listed on your profile, select the 11-digit taxpayer ID number listed next to your account. If your account is not listed, you can add it to your profile by typing in your 11-digit taxpayer number. Then, click “continue.” Note: If you need to find your taxpayer number, you can find it by searching the Texas Comptroller Business Database.
- Select the tax form you need to file under the Franchise Tax menu. Businesses with less than $1.23 million in annual revenue select “File a No Tax Due Information Report.” Click “Continue.”
- Select the report year. Click “Continue.”
- Confirm that you’re eligible to file a No Tax Due Report and click “Continue.”
- Answer the “Additional Reports” questions and click “Continue.” If you are not familiar with one of the terms in a question, you can click “Help” for definitions.
- Enter your SIC and NAICS codes. (If you don’t have these codes, you can leave these fields blank.)
- Enter your accounting year beginning and end dates. (For calendar year taxpayers, the start date will be January 1st and the end date will be December 31st.)
- Answer the qualification questions to confirm that you’re eligible to file the No Tax Due Report. (The answer to at least one of the questions must be yes to qualify to file this report.)
- Enter your business’s total revenue for the accounting year. Click “Continue.”
- Verify that your mailing address is correct. Click “Continue.”
- Update any incorrect information about your Principal Office, Officers, Directors, and Managers.
- Click on the box next to the Declaration Statement to confirm that the information is accurate. Click “Continue.”
- Review the information you’ve entered and make sure it’s accurate.
- Select “Submit Report.”
- Print or save your Confirmation Report for your records.
If you need additional help filing online, you can contact the Texas Comptroller’s office or check out the Comptroller website’s helpful Webfile video tutorials that will take you step by step through the process of creating a Webfile account and filing your taxes online.
To File By Mail:
- Under the heading “Downloadable Report Forms,” click the link for the year you wish to file for. The most current year will be listed first.
- Click the PDF for your appropriate tax return. (Note: the No Tax Due Information Report cannot be filed by mail. You must file this report online.)
Here’s a list of information you’ll need to include on your Texas Franchise Tax Report:
- Business taxpayer number.
- Reporting year and due date.
- Business name and mailing address.
- Texas Secretary of State file number. You can find this number by searching the Texas Comptroller Business Database. It will be listed under the heading “Texas SOS File Number.”
- Fiscal year start and end date.
- Standard Industrial Classification (SIC) code AND North American Industry Classification System (NAICS) code. Both codes are used by the US to classify businesses by their industry.
- Tax information. The remainder of the form will be used to calculate your total franchise tax due. You will need to know your total revenue for the previous fiscal year.
If you file online, you can pay any taxes due with a credit card or electronic check. Online payments will also incur an additional $1 service fee.
If you choose to file by mail, you must include a Texas Franchise Tax Payment Form and check or money order made payable to “Texas Comptroller.” You must also write your entity’s taxpayer number and reporting year on the check.
Rather not deal with the hassle of filing yourself? Or worried you’ll forget to file? Avoid incurring late fees and penalties when you hire Northwest Registered Agent to submit your Texas Annual Franchise Tax for you.
Get Texas Franchise Tax Report Service Today!GET STARTED
How Our Texas Annual Franchise Tax Report Service Works
For $100 plus the state-mandated report fee, we’ll send you the completed report for you to add your tax information and signature. Then, we’ll submit your Texas Franchise Tax Report.
You can sign up for this service by itself or add it on to an existing service. Compliance service is also automatically added when you hire us to provide your registered agent service or form your Texas LLC, Texas corporation or Texas nonprofit.
Once you’ve signed up for our business renewal service, you’ll pay nothing up front. We’ll send you a reminder 90 days before your filing due date and auto-charge your preferred method five days later.
Annual Franchise Tax Report Service Benefits
At Northwest Registered Agent, we’re committed to protecting our clients’ privacy. So, we’ve designed our franchise tax report service to protect your privacy. Here’s how:
In order to preserve your privacy, we’ll list OUR contact information instead of yours.
Only the minimum required information will be included.
We will list our IP address – limiting the connection between your cell phone, personal computer, and work computers – this makes it harder for advertisers to follow you.
We will list our bank and credit card information – not yours.
We believe everyone has the right to keep their information private. That’s why privacy is our guiding principle when we create every service and product.
Texas Franchise Tax Report FAQ
Does Texas require new businesses to file initial reports?
Nope. The state does not require new businesses to file initial reports. Phew!
Are there late fees or penalties if I don’t file my Texas Franchise Tax Report?
If you don’t file your Texas Franchise Tax Report on time, you’ll be assessed a $50 late fee. Late tax payments will be charged 5% of the total tax due. If you’re more than 30 days delinquent, you’ll be charged an additional 10% of the total penalty already assessed.
How long does it take to process a Texas Franchise Tax Report?
All tax reports will be processed in approximately 5-7 business days.
Who can file a Texas Franchise Tax Report?
After starting a business in Texas, any authorized person may sign the Texas Franchise Tax Report. An authorized person is someone your business permits to act on its behalf. This could be someone within the business (such as a director or manager), or someone outside of the business that you hire to file your report. When you hire Northwest Registered Agent for business renewal service, we’ll submit the Texas Franchise Tax for you!
Do Texas Franchise Tax Reports need original signatures?
It depends on how you file. If you file online, you may submit the report with electronic signatures. If you file by mail, you’ll need to provide original signatures.
Where can I get more information about the State of Texas Franchise Tax Report filing?
Texas Comptroller of Public Accounts
Lyndon B. Johnson State Office Building
111 East 17th Street
Austin, Texas 78774
PO Box 13528, Capital Station
Austin, Texas 78711-3528
Taxpayer Services and Collections
Central Services Building
1711 San Jacinto Blvd., Suite 180
Austin, Texas 78701-1416