How do I maintain an LLC in Texas?

How do I maintain my Texas LLC? | BetterLegal

What's the next step after registering my business in Texas?

After successfully setting up your business in Texas, you need to make sure that you keep your LLC in good standing with the state. This way, you will be able to transact with third parties smoothly, especially with your vendors and clients.

A good standing status shows that your company is compliant with the state requirements. This includes, but is not limited to, payment of annual fees and updating of your company information with the state.

Additionally, certain other formalities are required by the state, like appointing a registered agent for service of process and maintaining a registered office in Texas.

If you do not have a physical address in the state where you registered your LLC, check out BetterLegal's Registered Agent Service. Through BetterLegal's Registered Agent service, you will receive scanned copies of your important mails and you may also request for physical copies to be mailed to your address for a minimal administrative fee. Subscribe to our service now!

Why is it important to Maintain my LLC in Texas?

Third parties are able to obtain your good standing status by submitting a request to the Secretary of State in Texas. If a third party you are transacting with finds out that your company is in bad standing with the state, it may cause unnecessary delays and issues in your business transactions.

Also, failure to comply with state requirements may result to forfeiture, dissolution, or involuntary termination of your LLC.

This is why you should be on top of Texas's periodic requirements for Limited Liability Companies (LLCs) like yours. Maintain your LLC to avoid any issues and delays in your transactions.

If you need help in maintaining your LLC in Texas, check out BetterLegal's State Compliance package. We will make sure that your company complies with the state requirements to keep your company in good standing. Subscribe to our State Compliance Service Now!

The Basics of Maintaining Your LLC

There are different administrative tasks that make up the maintenance of an LLC in Texas, but can be grouped into categories:

1. Franchise Tax Report: Required filing in Texas to keep your LLC in good standing
2. Certificate of Formation: Updating of your LLC information in Texas
3. Operating Agreement: Legal document outlining the internal rules and procedures of a Limited Liability Company
4. Licenses and Permits: Documentary requirements for these in Texas vary depending on the nature of business
5. DBAs: Registration of other names a business may go by other than its official name
6. Taxes: Money owed to the government for revenues and earnings

Filing your Texas LLC's Franchise Tax Report

If you are planning to file your Texas LLC's Franchise Tax Report, BetterLegal has prepared an easy to follow step-by-step guide for you below. We have also included pertinent information that you need to remember when filing.

When is the due date for my Texas LLC's Franchise Tax Report?

File your Texas LLC's Franchise Tax Report every May 15th. You need to file it with the state every year. The Franchise Tax Report may be submitted as early as ninety (90) days before the due date.

How much do I need to pay for my Texas LLC's Franchise Tax Report?

Prepare to pay for your Texas LLC's Franchise Tax Report.

What information are needed when filing my Texas LLC's Franchise Tax Report?

When filing your LLC's Franchise Tax Report, make sure to provide your LLC's Taxpayer Number, WebFile Number, Last Year Gross Revenue, and any of its updated information, except for LLC name change.

How do I submit my Texas LLC's Franchise Tax Report?

You may submit your Texas LLC's Franchise Tax Report online or by mail.

(1) File Online
a. Log in to your account: Visit the Texas Comptroller of Public Accounts website at https://comptroller.texas.gov/taxes/franchise/ and click on the "Webfile" button on the top right corner of the page. Enter your User ID and Password to access your account.

b. Navigate to the Franchise Tax page: From your account dashboard, select "Franchise Tax" from the list of available taxes.
c. Complete the Franchise Tax Report: Follow the prompts to complete the required information in the Franchise Tax Report. Be sure to provide accurate information about your LLC's income, expenses, and any other relevant financial information.
d. Calculate and pay the tax due: The Franchise Tax due is based on your LLC's taxable margin. Use the Comptroller's Franchise Tax Calculator to determine your taxable margin and the tax due. After you have calculated your tax, make your payment using the online payment options provided by the Comptroller's website.
e. Submit the Franchise Tax Report: After you have completed the Franchise Tax Report and paid the tax due, submit the report online to the Texas Comptroller of Public Accounts.

(2) by Mail
a. Obtain the necessary forms: Download the Texas Franchise Tax Report and related forms from the Texas Comptroller of Public Accounts website at https://comptroller.texas.gov/taxes/franchise/. You will need to download and complete the Franchise Tax Report form, as well as any additional schedules or forms that are applicable to your LLC.
b. Fill out the forms: Provide accurate information about your LLC's income, expenses, and any other relevant financial information in the Franchise Tax Report form and any additional schedules or forms.
c. Calculate and include the tax due: The Franchise Tax due is based on your LLC's taxable margin. Use the Comptroller's Franchise Tax Calculator to determine your taxable margin and the tax due. After you have calculated your tax, make your payment by including a check or money order payable to "Texas Comptroller of Public Accounts" for the amount of tax due with your completed Franchise Tax Report.
d. Attach payment: Once you have filled out the forms and calculated the tax due, attach the payment to the Franchise Tax Report.
e. Mail the forms and payment: Mail the completed Franchise Tax Report form, any additional schedules or forms, and the payment to the following address:

Texas Comptroller of Public Accounts
P.O. Box 149348
Austin, TX 78714-9348

What is the turnaround time for my Texas LLC's Franchise Tax Report?

Your payment or filing submission will reflect on the state's records immediately if filed online, but updating of status in TX comptroller website may take up to 72 business hours. If filed by mail, it may take up to five (5) business days. .

What should I do if I miss my Texas LLC's Franchise Tax Report's due date?

Late submission of Franchise Tax Report in Texas is allowed. Late fee is $50 and an additional minimal convenience fee if filed online. You may file your late submission online (however, if more than three missed FTR, need to submit the last one via fax/mail).

If you fail to file more than two Franchise Tax Reports, your LLC registration will be forfeited. If more than three filings have been missed, your LLC will be administratively dissolved.

I missed my Texas LLC's Franchise Tax Report's grace period for late submission, what should I do?

If you also missed the state's grace period for the filing of Franchise Tax Report, file and pay for late fees if you only missed two filings, however, if more than three missed reports, reinstate at full price..

Certificate of Formation

If you want to update your company information but it is too early to file for your LLC's Franchise Tax Report or maybe you have already filed your LLC's Franchise Tax Report, but forgot to update your information, you may still do so by filing an amendment with the state.

BetterLegal may also assist you in filing these amendments. Check out the links below:

- Texas LLC Certificate of Correction
- Texas LLC Certificate of Amendment
- Texas LLC Change by Registered Agent to Name or Address
- Texas LLC Change of Registered Agent/Office
- Texas LLC Resignation of Registered Agent
- Texas LLC Certificate of Termination of a Domestic Entity
- Texas LLC Reinstatement and Request to Set Aside Tax Forfeiture
- Texas LLC Certificate of Reinstatement
- Texas LLC Registration of a Foreign Limited Liability Company
- Texas LLC Registration of a Foreign Professional Limited Liability Company
- Texas LLC Reservation or Renewal of Reservation of an Entity Name

Operating Agreement

The operating agreement outlines your LLC's internal rules and regulations. Some events, such as change in ownership, may require you to update your operating agreement. BetterLegal may also assist you with this.

Licenses and Permits

Licenses and Permits requirement may vary in each state and depending on the nature of your business. These licenses and permits ensure that companies within specific industries are abiding by its rules and regulations. If you need assistance in obtaining the licenses and permits required for your LLC, you may check out BetterLegal's Permit and License Search service.

DBAs and Fictitious Names

A DBA (Doing Business As) or a Fictitious Name is an alternative name or nickname under which a business can operate. This allows a business to conduct business under a name other than its legal name. For example, an LLC named "ABC Tile LLC" might file for a DBA and conduct business under the name "Texas Tile".

A DBA or Fictitious name is not a separate legal entity, it is a name that the business can use for its transactions and it does not change the legal structure or the ownership of the business.

If you need help in registering a DBA for your LLC, reach out to us via chat or call to confirm if we can assist with your filing.

Taxes

The type of taxes that each state requires vary. Meanwhile, all LLCs are subject to Federal Taxes due to the IRS and are reported through the LLC’s EIN. For the filing of your taxes, it is best to consult your accountant.