What is an annual report?

The annual report provides key details about your business, including the owners, business set-up details, and changes since the last filing date. It is something you need to comply with once you create an LLC in Texas.

In some states, the annual report is known by a different name. In Texas, the annual report is called a public information report.

There is no filing fee for a public information report or annual report in Texas.

If your LLC business operates in Texas and other states, it can be a challenge to coordinate the multiple filing dates and parameters. In some states, for example, you need to provide information about assets, revenue, stock and capital in addition to basic membership and ownership information.

Working with a third-party service can help you manage the deadlines, collect information, complete forms and file online reports in a timely manner. It’s important to pay attention to these deadlines. A failure to file in some states, including Texas, means fines and penalties.

Texas LLC Annual Report Requirements

The annual report or public information report is filed with the franchise tax forms. Here are the various requirements for completing the report.

• Taxpayer Number. Enter the Texas taxpayer number assigned to your LLC by the state Comptroller’s office. If you do not have this number, enter your federal employer identification number (FEIN)
• Taxpayer Name and Mailing Address. Enter the name and address on file with the state controller’s office
• Secretary of State File Number or Comptroller File Number. Enter the number provided by the respective state office
• Principal Office and Address. Enter the address within the United States where your LLC’s records are kept
• Principal Place of Business. Enter the address where your LLC conducts day-to-day operations
• Officer, Director, Member, General Partner and Manager Information
• LLC business name. For each person, enter the name, title and expiration date of their term. In addition, file the complete address for each Domestic LLCs must enter all managers and if the LLC is member-managed, all managers. In addition, all officers must be listed
• Owned Entities. Enter information about any subsidiary business entity in which the LLC owns a 10 percent or more interest. Required information for each subsidiary includes name, state of formation, Texas Secretary of State file number, if any, and ownership percentage
• Owned-By Information. Enter information for any parent business entity that owns 10 percent or more of your LLC. Required information for each parent entity includes name, state of formation, Texas Secretary of State file number, if any, and ownership percentage
• Registered Agent. Add the name and address of your Texas registered agent or registered office
• Signature. By signing the document, you are affirming that the information is true and correct, and that a copy of the report has been mailed to each person named as an officer, director, member, general partner or manager who is not currently employed by the LLC or a related entity

How to File an Annual Report in Texas

Filing your report with the state of Texas is embedded in the filing of your franchise taxes. Here are the details. 

Due dates

The annual report is due by May 15 for each report year. This is the same date as the franchise tax is due. If your LLC ceases operations, you must submit a final report, but not a public information report, within 60 days of the conclusion of doing business in Texas.

File online

Texas LLCs may file their public information reports with the state comptroller’s office via its Webfile online portal. There is no annual report fee in Texas.

File by mail

You may print out and mail the required forms. The forms are accessible via the state comptroller’s website. You can mail the completed forms to:

Texas Comptroller of Public Accounts

P.O. Box 149348

Austin, TX 78714-9348

Fill in the form with the above information requirements

You can take the time to determine which forms you need to fill out, gather the required information and complete the filings yourself. This is a time-consuming process that requires exceptional attention to detail. It also means confirming information from previous submissions and noting when there are changes.

File with a compliance service

Many Texas LLCs choose to use a compliance service to complete filings for them.

A compliance service like Tailor Brands can eliminate this task and ensure that you remain in full accordance with Texas state guidelines.

Compliance services ensure that your filings are completed and submitted by the May 15 due date. They will monitor any changes to the requirements and collect all the necessary information in a timely manner.

What Happens if Failed To File on Time?

There are consequences for not filing your annual report on time.

Late fees and fines

Any LLC that fails to submit an annual report prior to the May 15 deadline will be assessed a $50 late fee.

Penalties

LLCs that do not file on time and owe franchise taxes will be assessed an additional 5 percent penalty on taxes due. After 30 days of delinquency, an additional 5 percent penalty is applied. After 60 days, another 5 percent penalty is assessed.

Dissolution

If after 60 days, your LLC has not submitted its report, it could be subject to dissolution. In order to be reinstated, the LLC will have to file any missing annual franchise tax and public information reports. In addition, all tax, penalty and interest payments must be paid.

After those steps are completed, your LLC need to submit a Tax Clearance Letter Request for Reinstatement via Webfile or mail. Once you receive a tax clearance letter from the Comptroller’s office, the LLC can submit it and reinstatement forms with the Secretary of State office.

Conclusion

Your LLC annual report is an important document that details basic information to the state of Texas. The report requires collecting and reporting key information about the business, its structure, its directors and managers, and ownership interests. Filing this report is a mandated task within the state of Texas.

This report can be completed by your LLC or, as many businesses choose, by a compliance service that specializes in this work. Using a compliance service ensures that reports are filed on time and accurately.

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