Please see information on general tax topics (Sales Tax) along with tips to keep your business in good standing. Please begin this process 20 days before the report is due, as certain steps take multiple days to process.
Please Note: This information should not be considered an official document. For additional information, please refer to the list of official documents at the end of this web page. InstateMe does not give tax or legal advice. If you are seeking tax advice, please contact a professional tax consultant or the Internal Revenue Service at (800) 829-1040.
Please Note: If you haven't already, you need to submit the BOIR Report. It takes <5 minutes and will ensure your LLC is federally compliant.
Public Information Report
The Texas Franchise Tax Public Information Report (PIR) is a report that certain businesses in Texas. The PIR provides the Texas Comptroller of Public Accounts with information regarding the business's officers, directors, or members/managers, depending on the type of entity. This is due May 15th of each year. Obtain WebFile Number: you can skip these steps if you already have the number--it was mailed to you or we uploaded it directly into your Articles of Organization folder
Go to Taxable Entity Search website, type in your entity name (you can see the legal name in your Articles of Org folder), and search
Find your LLC name and hit "details"
Document your 11-digit Taxpayer ID # in your Dashboard Login Details page.
Ensure that you have access to your "Mailing Address." If you do not, update your address here
Takes 7 business days for the changes to be implemented
Call Automated Electronic Reporting Section at (800) 442-3453 and follow mini-steps below (should take 3 minutes)
Press 1 to access 24/7 WebFile number system
Enter 11-digit Tax ID
Listen to them repeat the number
Press 1 if correct
Press 2 to obtain a WebFile number
Takes 5 business days for the letter to be shipped
Press 2 for Franchise Tax
Press 1 for Franchise Tax (not Bank)
Press 1 for a Franchise Tax Report without affiliate schedule
Press 4 to have a letter send to your mailing address
Press 1 to confirm letter being sent (takes around 5 business days)
Linking WebFile # to your System account
Go to the Texas Comptroller of Public Accounts website
Under Business center, click "eSystem Login"
Under "First time user?", click "Create Profile"
Fill out User Information, Security Questions, Terms of Use, Email Verification
Verify Email
Log Into eSystem using your new credentials
Under "I want to ... " hit "Assign Taxes/Fees"
Enter 11-digital Taxpayer Number that you got above
Where is says "Franchise Tax," hit "Assign"
Enter your WebFile Number. If you do not have, follow the steps above.
You should have obtained a letter from Comptroller of Public Accounts
Number stars with XT followed by 6 numbers after it (located in the top right
Click "Submit Changes"
Hit "I Agree"
Submitting Public Information Report
Go to the Texas Comptroller of Public Accounts website and log in
Hit "File and Pay" under Franchise Tax
Select "File a Public/Ownership Information Report" and "Continue"
Select the most recent reporting year and hit "Continue"
Confirm mailing address and hit "Continue"
If you have a different mailing address, you may write the updated one
Where it says "Officer, Directors, Managers, Member or General Partner," enter your full name, title (could be "Owner"), business address, and "Yes" for the director
Review the Information and hit "Submit Report"
Select "Print this page for your records" and upload it into your "Articles of Organization" folder
Texas Sales Tax (WIP)
The Texas state sales and use tax rate is 6.25 percent, but local taxing jurisdictions (cities, counties, special-purpose districts and transit authorities) also may impose sales and use tax up to 2 percent for a total maximum combined rate of 8.25 percent. You will be required to collect both state and local sales and use taxes if the good is sold in Texas. If the end destination leaves the state, then you do not need to pay Texas sales tax. For information about the tax rate for a specific area, see Local Sales and Use Tax Rates on this sales and use tax web page.
Houston: 8.25%
San Antonio: 8.25%
Dallas: 8.25%
Austin: 8.25%
Fort Worth: 8.25%
Here are the steps you will need to follow:
Determine if your goods or services are taxable: Not all goods and services are subject to sales tax in Texas. You will need to determine whether your goods or services are taxable or exempt from sales tax.
In general, sales of tangible personal property (e.g., jewelry, clothing, electronics) are taxable in Texas unless they are specifically exempt. However, there are some exceptions and exclusions to this rule. For example, sales of items for resale, items used in manufacturing, and items used in agricultural production are generally not taxable. It's also worth noting that sales tax does not apply to certain services, such as professional services, repair services, and construction services.
Register for a sales tax permit: If your business will be collecting sales tax, you will need to register for a sales tax permit with the Texas Comptroller of Public Accounts. You can register online through the Comptroller's website or by contacting the Comptroller's office.
Go to the Texas Comptroller of Public Accounts website:
Click on the "Apply for Permit via eSystems" button
If you already filed the No Tax Due Report, log into your eSystems account
Under eSystem Services, click "Register for Texas Sales and Use Tax"
Click Continue
Click "Corporation / Limited Liability Company"
Hit Texas Limited Liability Company
Enter the required information about your business
Business Name
Filing #: located in the top right of your Articles of Organization)
Federal Employer Identification Number: same as your EIN in your Articles of Org folder
State of Formation: Texas
Merger?: No
Hit "Continue"
Provide your business activity information, including the type of goods or services you sell and the anticipated monthly sales
Provide the names and Social Security numbers or tax ID numbers of all business owners or officers
Select your business location(s) and indicate whether you will be selling items or providing services at those locations
Indicate whether you will be using a resale certificate to purchase goods for resale or for use in your business
Review the application and make any necessary corrections
Sign and submit the application
Pay the required fee, which is currently $20 for most businesses
Once your application is processed, you will receive your sales tax permit in the mail within 2-3 weeks
Collect sales tax from your customers: When you make a taxable sale, you will need to collect sales tax from your customer at the applicable tax rate. You should keep accurate records of your sales and the sales tax you collect.
If the sales tax is not included in the purchase price
include a separate invoice for the tax and the invoice (E.g. 2 separate Venmo requests that reference each other in comments)
If the sales tax is included in the purchase price
include one invoice for both the tax and the invoice (E.g. note in the comments that the invoice includes the sales tax)
Remit the sales tax to the state: You will need to file a sales tax return with the Comptroller's office and remit any sales tax that you have collected to the state. Sales tax returns are typically filed on a monthly, quarterly, or annual basis, depending on the amount of tax you collect.
Official Documentation
The Texas Comptroller of Public Accounts is responsible for administering and enforcing state tax laws in Texas. You can visit their website at https://comptroller.texas.gov/ for more information on taxes in Texas, including sales tax, franchise tax, and other taxes. You can also contact the Comptroller's office by phone at 1-800-252-5555. This is the main customer service number for the Comptroller's office. You can use this number to ask questions about taxes in Texas, get help with tax-related issues, or request forms and publications. The Comptroller's office is open Monday through Friday from 8:00 a.m. to 5:00 p.m. (Central Time).