How to File TX Franchise Tax | Complete DIY WalkThrough
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- Опубліковано 5 чер 2024
- What is Texas Franchise Tax and how is it different from sales tax? This is an important distinction. and this video will walk you through all that, along with:
👉 Who needs to file?
👉 Who is exempt?
👉 When is it due?
👉 How to get a webfile number
👉 How to request an extension
👉 AND how to file the different forms
You'll also learn how to use the Texas webfile system to file online.
Time Stamps
0:00 What this video will cover
0:46 What is franchise tax?
1:32 Who needs to file?
2:23 Who is exempt?
2:37 What are the due dates?
6:03 How to get a Franchise Tax webfile number
7:36 How to get a Franchise Tax account
8:58 How to request an extension
9:32 Types of forms and who fills out what
9:55 How to fill out the No Tax Due Information Report
12:48 How to fill out the EZ Computation Report
16:06 How to fill out the Long Form
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Website - comptroller.texas.gov/taxes/f...
Link to the extension form - comptroller.texas.gov/taxes/f...
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• How to File TX Franchi...
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So glad it was helpful! And we are so happy to have you here! If you have any content suggestions, let us know!
Well Done! Just completed my own Franchise Tax Filling for the first time!
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Thank you. We appreciate that. :)
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So glad to hear!
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The video is very thorough and informative. Thank you for taking the time and effort to produce and post the video. I have a quick question. If my business is a residential real estate brokerage in which revenue is a commission of the sale of individual properties am I subject to a franchise tax?
My understanding is that it is not, however, I'd like a second opinion.
I don’t think it’s subject to franchise tax either.
Thank you. I just filed for 2022.
Great!
Women you save my life I did not anything about this topic, and I thought I owe a lot of money
We're so glad we could help!
This video may have saved me
So glad to be helpful!
Thank you for this very informative video. It gave answers to my questions. When amazon collects sales tax on your behalf and submits to state then still you need to file taxes
ua-cam.com/video/I1bLb5SCk4I/v-deo.html this video should help!
Ma’am, you are doing The Lords work, or should I say Uncle Sam’s 😂😂, your video made it so much easier for me to complete this. You’re a asset to the community and deserve much praise ❤️❤️🙏🏼
Awww, thank you! And we're glad we could help you so much. :)
Thanks!! 🙏🏾
You're very welcome!
The video is really informative, can you please share some knowledge about exclusions from revenue in ez computation
What questions do you have about it?
Thanks for the info! If you're a foreign company you still need to file franchise tax? Also, the $500,000 threshold you mentioned is including all sales regardless of platform or whether the paltform is a marketplace facilitator?
Yes and it includes sales from all platforms.
Thank you for this helpful video. I started my LLC in December of 2021. For the "Total Revenue" section, do I just input my total revenue from my LLC's start date to 12/31?
Yes correct
Question: If your business is a service (not retail), do you still need to add the 'Sales and Use Tax'?
Depends on the service. This might be a useful link for you - www.salestaxhandbook.com/texas/sales-tax-taxability
@LedgerGurus Thank you for this detailed video, It is helpful.. I have few questions, my wife's LLC consulting company registered in sometime in August 2022, but we did not generate any income in 2022 so we need to file no tax Due report?. And another question is if we generate income in 2023 do we need to pay Texas Franchise tax returns in 2024 and still choose "No Tax Due report" if it is less than $1.3M?. One thing I couldn't understand is how much we need to pay for Texas franchise tax returns and where need to pay?. Sorry for multiple questions, Appreciate all your help
Yes and yes. The limit is actually a nationwide sales limit, not just for Texas. The franchise tax rate is 0.375% so you usually don't owe much. You can file and pay online.
Hi! Thank you for the informative video. I applied for a Seller's Permit to buy wholesale to resell but I applied as a Sole Proprietor. According to your video it says Sole Proprietors don't need to file but after I applied for the permit, the website told me my first filing would by July 20. Would I still need to file a "No Tax Due" report?
Is this for franchise tax or sales tax? :)
Thank you so much for the video! My llc was set up in Las Vegas long time ago, I used this llc to buy a commercial property in Texas in March 2022. Will I be getting a Texas web-file number from Texas controller for filing the franchise tax in the near future? Thanks in advance!
I’m not sure you will be subject to franchise tax. It might be property tax instead.
I’m only the landlord and collects rent from the tenant, I do not own the business of the tenant. The tenant is responsible for property taxes, but according to the lease, I will pay first and then the tenant reimburses me. Do you think I need to file the “no tax due “ franchise tax return? Thanks!
@@dsiu51 I don’t think franchise tax covers property tax. I would call the comptroller’s office to confirm though.
What if we filed an extension for our corporate 2021 Tax Returns? Do I have to file an extension also with Texas? Thank you so much for the help with this! Of course, I am waiting until the last minute to get this filed!
Yes! You will need to file an extension with Texas - it’ll be a 6 months extension.
Thanks for video, I open real estate investment business but have not made any revenue or purchase due to rates and house market do I need to file franchise tax thanks
If anything, you'd only need to file a No Tax Due Report.
Very helpful! Thanks for this video! A quick question, can we consolidate two TX franchise tax accounts? Aside from our account under the company's legal name, we also have one account under the name of one of our brands (DBA).
Same FEIN or different?
@@LedgerGurusSame FEIN.
Assuming that as a remote seller I include sales from marketplace facilitators (Amazon & Walmart)? If we just reached sales tax nexus in Oct. 2022 and registered for sales taxes and franchise tax at that point, what period of time do I report gross revenue for on the first franchise filing for Texas?
You report for the period you were registered with the state. If your company registered Oct 1 2022, then you would report the sales for Oct 1, 2022 - Dec 31, 2022.
I also receive the estimated tax due + penalty because I did not know that I had to file. Now I've just filed the franchise tax. What should I do with the letter telling me to pay estimated + penalty? Will it go away by itself, or I still have to pay for that too? Thank you.
It should go away, you can always contact TX comptroller’s office and get an update on the status.
Hi, I just formed my llc on 12/20/2021, When should i start to file franchise tax? Will that be before 5/15/2022 ? And what dates should i put on there?
Yes that's correct! You would put your starting date of 12/20/2021 on there and report sales from 12/20/2021 to 12/31/2021.
Very, very helpful! On my account, the comptroller site would not allow me to add a Sales Tax box. It only allowed the Franchise Tax.
Interesting! Did you apply for a sales tax permit?
@@LedgerGurus Not that I am aware of!
@@LedgerGurus No, as a matter of fact!
@@dreamvisionnotebook that’s okay then! If you didn’t apply for a sales tax license they wouldn’t assign you an account.
@@dreamvisionnotebook replied to you on your other comment. But you should be okay!
Question.
I'm confused about the accounting year dates. I'm filing for 2022. I registered with the state in March 2021. So would it be from 3/21 - 12/21?
Yes you will be filing for 3/21 to 12/21 that's due in 2022.
Thank you so much for this information, it is very helpful. I have a question, is the taxpayer name to be filled the name of the business or its business owner ?
That depends on what name the business is registered under. Usually it's the owner's name.
Hi! Question: At the top of the form, is the form asking for the business entity name or my personal name and info?
That section is for business information, not your personal information.
If my business is excluded from taxable services, do I still need to pay local tax (0.1500) when I file sales and use tax? Thank you!
You shouldn’t need to!
Okay i am lost. I do lawn care (grass cutting) as LLC solo. I make about 31k a year. My question is do I check on #1, #2, but #3, what do you mean didn't sell in texas? For sure I dont need to check on 4 and 5.
If you only make 31k a year you can just do an informational filing for Texas franchise tax. Use the no tax due report.
thank you for your information i have a question : my LLC company was inactive and i do not any income from my company for first quarter of 2022 i forgot fill sales tax for my company i receive a letter of compurter of public accounts texas for failure to file my return for this period and for late and i get notice for pay tax but my company do not working for this period let me know how can i waive this late fee penalty and estimate return tax ?
I would apply for a penalty waiver and let them know your situation. You should be able to apply for a penalty waiver using form 89-224.
I need to file Franchise Tax for Oklahoma, and am unable to find any information anywhere on how to do so, I keep seeing examples for California and Texas only. Do you have any input or advice on what I should look for or follow along with?
We don't have any content on OK specifically. I suggest you reach out and schedule a consultation with our sales tax experts. They do franchise tax filings all the time, and can answer your questions and walk you through it. calendly.com/ledgergurus-sales-tax/?UA-cam&
When I go to pay my franchise tax on the texas comptroller, I click the first option; "file a no tax due information report", just as you did in the video. When I click this I get a notification that says "No period obligations found for taxpayer ___" and it wont let me move forward with the process. Any idea why its doing this? I am attempting to do the filing for 2021, and today is the first day of 2022. Am I trying this too soon? thats the only thing I can think of as to why it wont let me do it.
Were you able to add the webfile number and link your account to your business?
@@LedgerGurus Good morning. I have the same issue as the one listed above, I linked my XT number and I clicked on it and it said the same thing as "no period obligations found..." Do I need to call the comptroller office?
@@shisong792 I would call and confirm. When did you register your business with the comptroller's office?
You should do a video about Mixed Beverage Gross Receipts Tax there is nothing for the Texas area
Thanks for the suggestion.
thank, it was quite confusing, i used to hire a guy for this but idk it seem ez
Glad we could help clear things up for you.
Thanks kindly for this video it's highly educational ... my question is .... i have an s corporation for transportation that I didn't use for the first year 2020 (zero income ) i did received the letter from texas comptroller of public account , should i just fellow what mentioned on your video or should i do something else thanks kindly for you help 👍👍👍👍🙏🙏🙏🙏🙏🙏🙏
I would report a no tax due return :)
@@LedgerGurus thanks kindly
How soon can you file the franchise tax report when a new year starts?
You should be able to file as soon as a new year starts. Add your webfile number and you should be able to see if it's available.
Hi , thankyou for your Time, if i have m'y LLC Can i filling tax's with out need a accountant in begenin
Yes for sure
How do we can calculate the amount Ford the sales amount for Texas? Is Ford the shopping o for the compa y we sell?
Sorry I don’t think I understand your question. Ford?
hi! I have a question. Am I supposed to get these forms in the mail or some sort of notice for payment? Somehow I think I might have missed it and only gotten the warning of late filing. Also, for the accounting year (2021), would I be putting 01/01/2020-12/31/2020 or? Thanks!!
You can access those forms online through the Texas comptrollers portal. Also, yes on using those dates.
@@LedgerGurus thanks for your reply! I mean, I want to know if I was supposed to get these in the mail, as in, did I miss it and maybe I need to look into the address or something since I did not get them in the mail!
@@rebeccalo247 If you truly didn't get them in the mail, you do need to check your address on file.
@@LedgerGurus Thank you so much!
@@rebeccalo247 You're welcome. 😊
Should I try the sales tax to franchise tax number trick or call to make sure? I didn't receive any franchise tax info even though I got a letter saying I would
Try it first and if it doesn’t work, call Texas :)
@@LedgerGurus I found an old letter from shortly after I registered my business a year ago with an FQ webfile number and that worked so i guess now there are FQ numbers?
Thank you for your very helpful content
@@Juan-dc6yf definitely! Let me know if you have any other questions!
Hello there! Our company is an A/E company and our office is outside Texas, and we do business in Texas. I don't see Sales and Use tax on our online access. I only see Franchise Tax that I can add (which is already added) but no sales tax. Do you know why..?
Did you register for sales and use tax with Texas? If you have the registration confirmation, you can contact the state with that confirmation number and have them check the status for you.
Hello Dear, for quarterly tax do we submit only no file tax report?
Texas franchise tax is due once a year instead of quarterly.
What should I be putting in for the Begin and End Dates if I'm filing for REPORT YEAR 2021 Annual (according to my form)?
Year 2021 is not due until May 2022. If you are reporting in 2021 for year 2020, then the begin and end date would be 1/1/2020 to 12/31/2020.
Hello dear what should write in due date and begging date i mean reports year and due date
I'm not sure I completely understand your question, but you can find the answers to your questions on the state website - comptroller.texas.gov/taxes/franchise/.
Following your directions to file my first franchise Tax I am getting this message when I pick No Tax Due: No period obligations found for taxpayer 'xxxxx' . Could you tell me what this means? Thanks.
When did you start selling in Texas?
Very good tutorial, do you have a tutorial for texas sales tax filing?
Not specifically for Texas sales tax, but we can make one!
@@LedgerGurus That would be super helpful! it is very different than others.
@@Dianacunha-hq2wb we will add that to our list!
I threw the letter in the trash didn’t know it was important it was my first years of business, where can I get that letter from? It’s august 2021 is there any specific form for late filing?
You can call the state and ask for your webfile number. They will either give it to you after confirming your identity or they will mail it to you.
I do have LLC but have done any business, do I still need to submit the franchise tax and I lost the email from comtroller what should I do now?
I would file a no tax due return.
Please how do I make a correction on my already filed franchise tax .
You'll need to file an amended return with the corrections.
how would I file for 2016 to 2020 since I did not filed and now my acct is inactive
I would contact the state’s department of revenue via phone and have an agent re-activate your account.
I dont have those 2 number. My llc i just registered 3 months back.
Thanks
If you haven't been assigned a taxpayer number and webfile numbers, go back to the video at 7:20 (already cued up here - ua-cam.com/video/4bt_apVurc4/v-deo.html) and watch how to be assigned those numbers. If you're still struggling, you can contact the Texas Comptroller's office - comptroller.texas.gov/taxes/file-pay/getting-started.php#:~:text=If%20you%20do%20not%20have,from%20a%20previously%20filed%20report.
Hello, this franchise tax is in addition to our sales tax correct?
That is correct.
If I have an LLC but I don't sell anything, do I just file a a NO TAX DUE INFORMATION REPORT every year?
Yes correct.
I didn't do any business, net sales or purchase are zero. Now I am exempt for zero tax filings? And should I submit public/ownership information report.
My llc incorporated in Feb 2023. Ownership report had to file in 2023 or now after 2023?
If you had no sales, you have no taxes. I suggest you contact the state to ask about the ownership report as that's not really our area of expertise. By the way, we recently updated our blog on TX franchise tax, with all the new information. You may want to check it out: ledgergurus.com/how-to-file-texas-franchise-tax/?UA-cam&
what if i just open my LLC but havent done anything with it? do i still need to file franchise Tax?
So, you haven't sold anything yet? If anything, you'd only need to file a No Tax Due Informational Report.
I got a sales tax permit just now, (the end of the year). At what point do I start paying taxes? So far my online store made around 100 dollars since I literally just started lol. I pay taxes on just that? Or do I get a freebe if its a low amount. Thanks. Im young and ignorant of these things. Nice video btw
Thank you! Yes! If you make less than 1.1 million, you can file a no tax due return. It’s due in May 2023.
If i dont sell anything but i am a junk removal service do i put no tax due?
Please help im so lost and this my first year filing late :(
Probably so, but I'd contact the Comptroller's office if you want to make absolutely sure - comptroller.texas.gov/taxes/franchise/
Hi, I formed an LLC for my home baking business in January and haven’t make any money yet. Do I have or file income tax return, sales tax and Franchise tax if I haven’t make any money yet?Thanks!
You will still need to file returns and report that you haven't made any money yet. I believe you only need to file sales tax return and franchise tax return. Did you receive any notices from Texas yet?
@@LedgerGurus I got a letter about Franchise tax. Other than that I didn’t receive anything else. I didn’t file the sale tax permit, so I am not sure if I need to file sales tax. By the way, Do I need to have EIN to file Franchise tax?
@@creativetouch-artcraftdesi9044 Yes you do need to have EIN to file Franchise tax. Since they contacted you, it's best to go to Texas Webfile and file a no tax due Franchise tax return.
May I ask what do you mean “if you didn’t sell anything into Texas.”. I live in Texas so all of my services are done here. Does that mean I have “Texas gross receipts”?
If you are providing services to customers in Texas then you need to remit franchise tax on those sales. If you are getting services done for you, then you don't have any liabilities.
Hello, I need help from you. I didn't know anything about franchise tax until today I found out when franchise tax took my money in the bank account without any notice and I didn't have to do anything.
That doesn't seem right. Generally you have to file a return first. I'd contact the Comptroller's office for the state and see what's going on.
I only received the franchise tax notice; how do I obtain my webfile number for sales and use tax?
Start watching the video again starting at 6:03. It will tell you exactly how to do that.
my total revenue is zero as I opened my LLC in Nov 22. My franchies according period from 11/22/2022 till 12/31/2022 for
report year 2023. If so I need to choose option 2 am i right? Option 2 in form 05-163 This entity's annualized total revenue is below the no tax due threhold.
You can file a no tax due form and yes that’s correct.
You’re phenomenal, thanks this reply helps. Very grateful that you answer people’s questions. That’s very kind of you.
Hello . Is it possible to amend it? If the form filled out incorrectly?
Definitely! You can amend it.
When filing out the form, my lines 8, 14, and 18 has the notation "nan" and will not let me enter numbers. Please help
Which form are you filling out?
I created a comptroller account but I received no letter via mail nor email ! so far! is that normal? I need to apply for tax permit for my new business. the website said I can't till got my franchise tax status active!! I can't get it active without the tx or rx number! what should I do?
Did you apply for a seller’s permit yet? They won’t send you anything until you apply for a seller’s permit/sales and use tax license.
Hi I'm new to your channel and I was wondering what dates would I need to put in the accounting year begin date and end date. I started my llc in May 2021 but I haven't done any business under the llc yet. Could you please help. Thank you so much.
I would put May 2021 to December 31 2021.
@@LedgerGurus Ok thank you so much for replying.
@@LedgerGurus I'm sorry one last question if I started on May 15 would I need to put May 15 or just May 1st of 2021.
@@kaydenise237 yes correct!
@@LedgerGurus which one would it be?
Why can’t I assign franchise tax return form on comptroller? Does that mean I don’t have to file?
You should receive a letter from the Comptroller office with a code, and that is what you need to use to assign the franchise tax account. You can request this letter from the comptroller office. It is a different code than what you used to assign your sales tax account. For a description on how to determine that code FROM your sales tax account number, watch the video again starting at 6:03.
How to Submit Quarterly Sales and Use Tax Of TX ? Of Amazon
Amazon should already be remitting sales tax for you in Texas because of marketplace facilitator laws.
I opened my LLC on December 1st 2020, I received notice I have to pay $1000+late fee☹, do I need file Franchise tax for one month in 2020? On December 2020 I made $90😅 so should I pay $1157.00 ? What's accounting date ?
You have to file the Franchise Tax Report on time even if you have no tax to report.
TX always estimate high until you file. You should be able to file the no amount due return and you won’t owe anything and the estimate will go away as well.
If i don't have my forms with the webfile number how can i get it again?
You can call the Texas Comptroller office and ask.
What if I only have the franchise tax and not sales and use tax ? Does that mean I only have to do the franchise tax because it don’t give me any options to get sales and use tax
I would suggest contacting the Texas Comptroller to see how to get the sales and use tax number, too, if you have nexus in Texas.
i created my LLC november 2022, just completed no tax due report for franchise tax. however, i don't have a webfile number for sales/use tax to assign as i only received mail for franchise tax report. where can i find that or do i not need to assign that yet?
Did you apply for a sales and use tax account?
@@LedgerGurus Hi, I just received my sales and use tax return in the mail with the webfile number. Should I wait to file the tax return in case I get more sales before the due date or can I file it now?
I have a LLC 100 percent member BUT I filed my taxes as a sole proprietorship. That means I am exempt...am I right?
Yes correct!
Do you show how to do liquor tax’s in Texas?
Sorry we are not experts in excise tax.
Can you look at my form, please? It’s for a transportation business
I’m happy to! You can email me at salestax@ledgergurus.com or schedule a consulting call here: calendly.com/ledgergurus-sales-tax/1-hour-sales-tax-consultation?month=2022-09