Texas INC Annual Filing Requirements
A business corporation is quite a popular form of business for entrepreneurs due to the many advantages it has like business security, personal liability protection, access to capital through investors and VCs, and continuity. Once you have incorporated your startup, it is important to identify your Texas Corporation annual requirements as failure to maintain them can lead to penalties for the company. One of the most important annual requirements is the Texas corporation annual report also known as the Public Information Report (PIR). Let’s take a look at the requirements of the Public Information Report and how to file it.
Texas Franchise Tax Public Information Report
When you form a corporation in Texas, there are several annual compliances that your company has to meet in order to enjoy active status. One of the foremost annual compliances is that of filing a Texas corporation annual report also known as the Franchise Tax Public Information Report (PIR) pursuant to Texas Tax Code Chapter 171 – § 171.203. Although a corporation or professional corporation in Texas needs to file the Public Information Report (PIR), other forms of businesses may be required to file the Ownership Information Report (OIR) and this depends on the type of business that is filing a franchise tax report.
What does it include and how to file?
The Texas corporation annual report or the Public Information Report (PIR) consists of basic information regarding a corporation. Some of the information that is provided through the report includes the name and mailing address of the entity as well as the owner, director, and managers. If a corporation reports total annual revenue generated to be less than $1,180,000 then they will be considered to be in the “No Tax Due Threshold” or No Franchise Tax Due bracket. In such a scenario, you will still be required to file the PIR as a part of your Texas Corporation annual requirements.
This Texas corporation annual report is filed with the office of the Texas Comptroller of Public Accounts (CPA). You can mail it or submit it online using the Webfile esystems. You would be required to create a profile in order to submit the report online.
As a part of the Texas Corporation annual requirements, your Public Information Report should contain the following information:
- It is important to select the correct Texas corporation annual report year. Unlike, a franchise tax report, which is based on the financial year; the annual report has to be submitted each year.
- You will have to provide personal information including mailing address of directors, managers, or owners of the corporation if applicable.
- You will be required to provide “Industry Classification Code” for your corporation in order to meet the Texas corporation annual report requirements. The codes will help the office of the Texas Comptroller to identify the primary industry your business is operating in.
- You will have to provide information regarding the principal place of business and principal office of the said corporation
- You will also need to provide contact information of Texas LLC registered agent
One of the important aspects of the Texas Corporation annual requirements is that the Public Information Report (PIR) has to be submitted along with the Texas franchise tax report.
What is the due date for filing?
The filing of the Texas corporation annual report for a business corporation is governed by Texas Tax Code – TAX § 171.203. The Public Information Report has to be filed annually by May 15 in the year following the year your business was incorporated. For example: If you incorporated your startup on June 10, 2021 then as a part of the Texas Corporation annual requirements, the Public Information Report will be due on May 15, 2022.
Penalties if fail to file
The Texas corporation annual report is not the only document to be filed by a business corporation as it has to be submitted along with the franchise tax report. According to the Texas Tax Code – TAX § 171.251, failure to file the public information report along with the franchise tax report can lead to penalties and the comptroller may even decide to forfeit certain privileges of the corporation including the privilege to operate in the state.