I have recently formed an LLC, which focuses on providing land services to energy companies throughout the United States and primarily in Texas. As a Start-up company, what is the relationship between my LLC and the Texas State Comptroller's office? Further, what is our company's obligation to the comptroller's office?
The Texas Comptroller's office collects all taxes for the State of Texas. The most important one for you would be the Franchise Tax, which needs to be reported on May 15 every year. If you fail to do so, the Comptroller will strip your LLC of its right to do business in Texas and you will eventually have your LLC revoked by the Secretary of State and will have to pay to get your company reinstated. Fortunately, filing this return is quite easy and the tax is relatively low; assuming you have to pay it at all. But you must file a return annually, even if you don't owe any tax. If you haven't already, you should receive a letter from the Comptroller's Office explaining this, as well as another letter next year telling you of the upcoming deadline. The notice they send will include your Webfile number, which will allow you to file your returns online. Be sure to save this notice. If you cannot file by May 15, you can request an extension. If your business is subject to sales tax, you will also pay this to the Comptroller's Office. and will need a valid Sales Tax Permit to do business. The penalty for not having a sales tax permit is quite high, so you should look into this if you're not certain if you're liable for it. But again, all this is complicated and you should seek the services of an accounting professional if you don't feel comfortable with this. Trust me, this isn't the sort of thing you want to get wrong.
