If you have state law protection in any of these forms, then you will need to file your 2018 Texas Franchise Tax Report by May 15, 2018: C Corporation; S Corporation; Professional Corporation; Professional Association; Limited Liability Company; Limited Liability Partnership; Professional Limited Liability Partnership; Professional Limited Liability Company; Limited Partnership; and there are more.
If your gross revenues are below $1,130,000, then you may use the No Tax Due Report, and you will not owe any tax—but you still must file the report. If your revenues are over that amount, then you must file the forms and pay the tax. The rate is .0075%, or three quarters of one percent. If you are a service company, then you can deduct salaries and benefits. If you are a manufacturing company, then you may deduct cost of goods sold (COGS). Be sure to look at the instructions online to see all the items to include in COGS. It is more inclusive than the COGS on your federal return. If you can’t file by the due date, then you may file an extension and if you owe tax then you must pay at least 90% to avoid any penalty. The rules are very complicated, so try to get it done as soon as possible. Good Luck.
That is all today. I look forward to visiting with you next week. Let me know if you have a question—you can send an email to robert@robertstevensoncpa.com or call (713) 785-8939. You can also leave a comment on this post.
Robert T. Stevenson, P.C., CPA 