Transportation Companies: Annual Report & Franchise Tax

March 26, 2024 News

In the transportation world, company owners must timely report the Annual Report and Franchise Tax to keep their companies active and their operations legal. For companies operating in Texas and some other states in the United States, filing the Franchise Tax by the established dates ensures that the trucking company remains active and penalty-free. However, many companies, including trucking transportation firms, may overlook the importance of correctly reporting this tax.

Annual Report and Franchise Tax are the most common names to refer to taxes that companies and corporations must file, which are a requirement and a state obligation in all 50 states of the United States.

Throughout this article, we will provide you with the necessary information so you can learn everything you need to know about the Franchise tax and the Annual report to keep your company’s records in good standing and not jeopardize its operation.

What is Franchise Tax?

The Franchise Tax, or Franchise Tax, is a tax on the income or capital of companies operating within certain states in the United States. Although the name may suggest otherwise, it is not exclusively linked to franchise companies but affects all companies operating in the states where it applies, including those in the trucking transportation industry.

Reporting the Franchise Tax doesn’t necessarily mean companies have to pay large sums of money. In fact, many, including small companies with just one truck in their fleet, may be exempt from paying the tax due to income or capital thresholds set by the state. However, even if a company doesn’t have to pay the tax, it still must file the corresponding declaration forms. This is crucial to maintain transparency and tax fairness in the system, ensuring that all companies contribute fairly according to their capacity.

Failure to report the Franchise Tax can have serious consequences. In addition to fines and financial penalties, companies could face legal issues that could endanger their ability to operate. Non-compliance could result in a more detailed audit by tax authorities, leading to greater complications and costs for the company.

Annual Report

On the other hand, the annual report in the United States for freight transportation companies refers to a financial and operational document that road transportation companies must file annually. This report provides an overview of the company’s business activities during the fiscal year, including details on its finances, operations, performance, and future prospects.

The primary purpose of the annual report is to provide shareholders, investors, and other stakeholders with relevant and transparent information about the company’s financial and operational performance during the fiscal year.

The content of the annual report may vary by company, but it generally includes key financial information such as audited financial statements (such as the balance sheet, income statement, and cash flow statement), management analysis of business performance, discussion of risks and opportunities, and other data relevant to shareholders and investors.

The responsibility for the annual report lies with the road transportation company and its management team. This includes company executives such as the chief executive officer (CEO) and chief financial officer (CFO), as well as accountants and external auditors who may be hired to verify the accuracy of the financial information.

On what dates must the annual report and the franchise tax be filed?

It’s important to note that the filing deadlines for the annual report and franchise tax can vary significantly by state, company type, company incorporation date, and business type, whether it’s an LLC (Limited Liability Company) or a corporation.

Firstly, the specific dates for filing annual reports and paying franchise taxes may differ between states. Additionally, you should be aware that there is a stipulated frequency for filing the annual report and franchise tax, whether annually or biennially, which determines the validity of the report.

From the expertise of Personal Truck Services and the behavior of the trucking industry, below you can find the schedule for the annual report and franchise tax in the states where we have created the most number of transportation companies. This calendar will help you have clear dates when filing your report:

Annual Report Filing Guide for Trucking LLCs

State Expiration date Report Name Validity
Florida May 1 Annual Report 1 year
Texas May 15 Texas Franchise Tax Report 1 year
California The 15th day of the 4th month from the trucking company’s formation date Annual Franchise Tax Report 1 year
Alabama The same date as federal return Business Privilege Tax Return 1 year
Arkansas May 1 Annual Franchise Tax Report 1 year
Georgia April 1 Annual Registration 1 year
Illinois Before the first day of the company’s anniversary month Annual Report 1 year
Iowa April 1 Biennal Report 2 years
Kentucky June 30 Annual Report 1 year
New Jersey End of the month prior to the company’s registration anniversary month Annual Report 1 year
New York Last day of the company’s anniversary month Biennial Report 2 years
North Carolina April 15 Annual Report 1 year
Oregon Company’s Anniversary Date Annual Report 1 year
Tennessee The 1st day of the 4th month following the fiscal year-end Annual Report 1 year
Utah Last day of the company’s anniversary month Annual Renewal 1 year
Virginia Last day of the company’s anniversary month Annual Report 1 year
Washington Last day of the company’s anniversary month Annual Report 1 year


Annual Report Filing Guide for Trucking Corporations

State Expiration date Report Name Validity
Florida May 1 Annual Report 1 year
Texas May 15 Texas Franchise Tax Report 1 year
California The 15th day of the 4th month from the trucking company’s formation date Annual Franchise Tax Report 1 year
Alabama The same date as federal return Business Privilege Tax Return 1 year
Alabama The 15th day of the fourth month after beginning of the tax year Annual Return 1 year
Arkansas May 1 Annual Franchise Tax Report 1 year
Georgia April 1 Annual Registration 1 year
Illinois Before the first day of the company’s anniversary month Annual Report 1 year
Iowa April 1 Biennial Report 2 years
Kentucky June 30 Annual Report 1 year
New Jersey End of the month prior to the company’s registration anniversary month Annual Report 1 year
New York Last day of the company’s anniversary month Biennial Report 2 years
North Carolina The 15th day of the 4th month after the fiscal year closes Annual Report 1 year
Oregon Company’s Anniversary Date Annual Report 1 year
Tennessee The 1st day of the 4th month following the fiscal year-end Annual Report 1 year
Utah Last day of the company’s anniversary month Annual Renewal 1 year
Virginia Last day of the company’s anniversary month Annual Renewal 1 year
Washington Last day of the company’s anniversary month Annual Renewal 1 year

The annual report and franchise tax are a legal and regulatory requirement

Freight transportation companies in the United States are subject to legal and regulatory requirements regarding financial reporting. These requirements may be established by the Securities and Exchange Commission (SEC), as well as relevant state and federal laws.

The Annual report is an important tool for transparency and disclosure of information by road transportation companies. It provides shareholders and investors with a detailed view of the company’s financial health and operational performance, helping them make informed decisions about their investments.

In summary, proper compliance with fiscal and regulatory obligations, such as the Franchise Tax and the Annual Report, is crucial for transportation companies, as well as other commercial entities in the United States. These requirements not only ensure tax transparency and fairness but also provide shareholders and investors with a clear view of the company’s financial and operational performance.

Just as a company must keep its truck regulatory permits up to date, it must also keep its corporation or LLC reports up to date. Filing the report does not necessarily mean a payment must be made.

Timely and accurate filing of these reports not only avoids potential financial and legal penalties but also helps maintain the trust of all stakeholders in the company. Ultimately, understanding and complying with these requirements are fundamental to the record and continued success of any road transportation company. If you still have doubts about how to go through the process or whom to turn to start your company’s report, schedule a consultation with one of our specialists in regulatory trucking permit services for trucking companies, chat with us or call us. At Personal Truck Services, we are here to help you with the entire process!