This is where you should answer the most common questions prospective customers might have. It’s a good idea to cover things like your return policy, product warranty info, shipping and returns, etc. Check out the examples below.
Information needed to prepare your return?
- Contact Information – Your name, email, and phone will be collected for follow-up questions and return/report signature.
- Webfile Number – Your webfile or XT Number (XT######) is your account or identification number with the state. It begins with XT followed by 6 numeric digits. Your XT Number is the easiest way to identify your entity with the state for franchise tax purposes! If you don’t have or know your webfile, that’s okay! We will just need your legal business name to proceed.
- Last Year’s Revenue – Rounded to the nearest dollar amount. If you have already filed your federal return, then please see information below to help identify your entity’s Last Year’s Revenue.
- C-Corporation – Form 1120 (Line 1a) Gross receipts or sales
- S-Corporation – Form 1120S (Line 1a) Gross receipts or sales
- Partnership – Form 1065 (Line 1a) Gross receipts or sales
- Single-Member LLC/Sole Prop – Form 1040, Schedule C (Line 1) Gross receipts or sales
- Key Personnel Information – Officers, Directors, Managers, and Members’ names, addresses, and titles will be collected for the preparation of the Public Information Report.
- Year-End Filing Date – Does your entity have a calendar-year or fiscal-year ending? Calendar-year ends on Dec. 31, while fiscal-year ends on any other month. The year-end filing date can often be found at the top of federal tax returns (“For Calendar Year 2017 tax year beginning _______, 2017 ending _______, 20“).
- Payment Information – Your payment information will be collected to pay for Texas’ imposed late filing fees ($50.00), an electronic-convenience fee to the state ($2.50), and our service fee ($125.00). Payment information will be collected up-front, but will not be processed until the return is complete. Late filing fees and convenience fee will be remitted directly to the state.
What is a Texas Franchise Tax?
The Texas franchise tax is a “privilege tax”generally imposed on each taxable entity formed or organized in Texas or doing business in Texas.
What is a Information Report?
A public information report is an accompanying report to the Texas Franchise Tax. It is required by the state to be filed with the Franchise Tax Return.
I do not own a franchise, do I still have to fill a Texas Franchise Tax Return?
Yes. Unfortunately, Texas Franchise Tax has a misleading name. Generally, if you are doing business in Texas, you have an obligation to file a Texas Franchise Tax Return and Information Report annually.
What is a Webfile Number?
Your webfile number is also referred to as a XT number. It begins with XT and is followed by 6 numeric digits (XT123456). It is your assigned franchise account number from the state and is the easiest way to identify your entity with the state for franchise tax purposes.
What is a XT Number?
Your XT number is also referred to as a webfile number. It begins with XT and is followed by 6 numeric digits (XT123456). It is your assigned franchise account number from the state and is the easiest way to identify your entity with the state for franchise tax purposes.
Texas Franchise Tax Return and Public Information Report Due Date ?
The Texas Franchise Tax Return and Public Information Report Due Date is May 15.
Is there a penalty for late-filing?
Yes. Texas imposes a $50.00 late filing fee. There is also a $2.50 online convenience charge. If franchise tax is owed, and within 30 days after filing due date, a 5% penalty is assessed. If tax is owed and paid after 30 days, a 10% penalty is assessed.
How do I know my business entity is forfeited?
You can check the “Certificate of Account Status” here: https://mycpa.cpa.state.tx.us/coa/search.do by entering your entity’s taxpayer’s ID or legal name.
How is Franchise Tax Liability Calculated?
Generally, Texas Franchise Tax is based on a taxable entity’s margin and is computed one of the following ways:
- Total Revenue times 70 percent;
- Total Revenue minus (COGS);
- Total Revenue minus compensation; or
- Total Revenue minus $1 million.
However, there is a No Tax Due Threshold of $1,130,000 imposed by the state.
What is a calendar-year filer?
A calendar-year filer is a business that closes the books on Dec. 31 of each year. This is the most common type of filer and must be used for flow-through entities (S-Corporations and Partnerships).
What is a fiscal-year filer?
A fiscal-year filer is a business that closes the books any month other than December. Examples would include Fiscal-Year filer March 31. or Fiscal-Year June 30.