5 things you need to know about the Texas Franchise Tax
The Texas Franchise Tax is a report that must be filed annually by all businesses operating in Texas. Many transport companies ignore they must present this report because it is not common to find it in the list of Taxes and regulatory permits for transportation companies; however, the Texas Franchise Tax Report must be submitted by all types of companies from all industries.
The Texas Franchise Tax report must be submitted yearly on May 15; if this date coincides with a weekend or holiday, the maximum term will be until the next business day. Your company may not have to pay Texas Franchise Tax, but the report must be filed to continue operating.
You can research whether your business must pay the Franchise Tax, although this may take time. If you still don’t quite understand what the Texas Franchise Tax is and have no idea how to do all the paperwork to file the report within the estimated dates, you can seek experts’ help to save time and avoid headaches.
Here we share five things that will help you understand its importance.
1. What is the Texas Franchise Tax Report?
The Texas Franchise Tax Report is an annual business Tax levied on business owners in exchange for the opportunity given to them to do business in Texas. This process is known in Texas as Franchise Tax Report, in California as Franchise Tax Board, and in other states of the country as Annual report.
2. Who pays Texas Franchise Tax?
Almost all businesses in Texas must file Texas Franchise Tax Report: LLCs, and non-profit entities, among others, but it does not mean they have to pay. Even transportation companies must file the report with the Texas Comptroller of Public Accounts to continue working and avoid the vehicle’s detention.
3. Why do I have to report the Texas Franchise Tax Report?
All companies in Texas must file the Texas Franchise Tax Report because failure to do so may lose their right to do business in that state, and their company may be closed by the Comptroller of Public Accounts. Or in the case of trucking companies, the fact of not presenting the report can cause the detention of the vehicles.
If you wish to make any changes to the submitted tax reports, you can send them in printed format with a cover letter stating the reasons for the difference.
To reinstate or cancel a business or entity formed in Texas or outside of Texas, you must meet all state tax reporting requirements before doing so.
To obtain a state certificate to cancel, convert, merge, or withdraw registration with the Texas Secretary of State, you must file your tax report and pay any amounts due in the year you plan to terminate, convert, or merge.
4. Are there penalties for late filing?
An entity’s accounting period includes the accounting year’s start and end dates. If the report is submitted outside the estimated period, penalties may be applied, ranging from 5% to 10% of the total value to be declared. To avoid this, we recommend you file your Texas Franchise Tax report on time each year.
5. How to do all the paperwork to submit the Texas Franchise Tax Report?
The Texas Comptroller of Public Accounts provides step-by-step information to do it yourself, but it can be tricky. To save time and avoid possible mistakes, you can contact one of our specialists at Personal Truck Services to do all the necessary paperwork. The difference between doing it yourself and doing it with us is TIME and NO MISTAKES. A team of professionals will do it faster. Thanks to their experience, they know the process perfectly and do not need to spend hours reading and filling out documents. For professional help, contact us at (832)360-2067.
All companies must present Taxes; Texas trucking companies must file the Texas Franchise Tax report annually on May 15. Submitting the Texas Franchise Tax Report does not mean that they must pay, but it is mandatory to submit it.
If you still need the complete documentation, you can request an extension from the Texas Comptroller of Public Accounts.