If you have a Texas LLC, then you need to be aware of the requirements related to the annual report. This is a legal requirement and you can face serious penalties if you fail to file your annual report.
Understanding the Annual Report
The annual report refers to a filing that all limited liability companies need to complete each year in many states, including in Texas. This report involves ensuring the information the Secretary of State has about your LLC is accurate, including the address for the registered agent. It also requires you to pay the franchise tax for your LLC. In Texas, the annual report is known as your "Franchise Tax Public Information Report." You must file this report with the state's Comptroller responsible for public accounts.
There are multiple reasons that Texas wishes to ensure it has accurate information about all LLCs. The government utilizes the information to ensure that you pay your state taxes. Creditors, as well as any other interested party, can also use your updated information to find the LLC's business address when they have to make contact for any reason.
How to File
Texas not only requires all LLCs to complete their annual report, but the state also makes it simple to do so as a way to encourage filing. Start by visiting the website for the state's Comptroller in charge of the Public Accounts. If you do not already have an account with the Texas Comptroller, you must make one before filing. You likely already have an account from other processes related to forming your LLC.
Remember that to file the annual report, you will have to provide the State identification number for your LLC. If you cannot remember what paperwork this number is on, it is possible to find the ID number easily via the state's search for business entities.
The Deadline
Make sure that you file your annual report before May 15 every single year. The only exception is that you do not need to file an annual report when your LLC is still in its first calendar year of formation. This means that an LLC that forms in January will have the same due date for its first ever annual report as one that forms in December of the same year.
Penalties for Missed Filings
It is very important that you remember to file your annual report with the Texas Comptroller. Failing to do so on time will lead to a penalty of $50. It is also possible that, depending on the circumstances, Texas will automatically dissolve your LLC.
Registered Agent Services Can Assist
If you want to streamline the process of filing your annual report with Texas, you could use your registered agent's services. Texas already requires you to have a designated registered agent to send and receive papers for the LLC. The registered agent will also be able to remind you when your annual report's due date is approaching. In some cases, they may also be able to assist you with the actual process of filing the annual report. This additional service may come with a small fee, so be sure to ask.