Filing Franchise Taxes in Texas - 2024 Updated Guidelines

top of the top y'all it's your boy show tapping in man I just want to do a quick video update because a couple months ago at the end of 2023 I released a video on how you can file franchise taxes for your business in Texas however in 2024 they have updated the guidelines and you no longer have to file a no tax du report instead if you do not reach the tax threshold you only have to file a public information or ownership report all right it is very simp simple doesn't cost you anything it's even quicker than fing franchise taxes I mean extremely simple but I'm still going to walk through it in this video with you guys just so you are updated with the new guidelines for 2024 if you do not reach the tax threshold which for 2024 is 2.4 million last year the tax threshold was only 1.2 million so they actually doubled that for this year and gave business owners a lot more leeway and not having to foul fr taxes so if your business did not gross at least 2.4 million last year no need to file a franchise tax report you only need to file this public information report which is pretty much just letting the Secretary of State or the controller of the state know that your business information and your personal information as the owner of the business is still the same as what they have on foul all right literally easy is one two 3 Let's get into the video when you log on to your web file account or your com controller account online uh it will populate your business name and what taxes you currently need to file and we can see right here I need to do my franchise taxes for this business and so that's what we're going to do now my last video was showing you guys how to file a no tax due information report if you were below that threshold business did not gross the amount on the no tax due threshold you did not have to file uh a tax report or you have to f a no tax du report um but that is no longer the case starting January 1st 2024 they got rid of this okay so only applicable for reports originally due prior to 1 2024 so if you have old Franchise Tax reports you will still need to file a no tax due information report but since this is my franchise tax report that is due for 2024 we're going to file a public ownership information report okay that's all that's needed moving forward and you can see it even gives you uh a note here beginning with reports doing 2024 taxable entities with annualized total revenue less than or equal to the no tax due threshold are no longer required to file a no tax due report but must still file a public ownership information report note that the threshold applies to the annualized total revenue of a combined group not the individual members of a combined group all right so let's keep going we're doing an annual report it's not due to May 15th but we're going to go ahead and file it today and if you watch my LLC video uh how to file a LLC video then you know it is important to register your business with a virtual address this is my virtual address right here all right let's keep it going okay so this information is correct just update mailing address if it's incorrect this is correct so we'll just hit continue this is just my business information I'm going to cover this up uh just because some of this is kind of private as far as uh my personal address um and things like that but this is the information that should already be up to date with your business if you have filed a report before okay so if nothing has changed then you want to acknowledge this check box down here click continue all right and that is literally it it's pretty much just confirming that the information that they have on file your business is all up to date all right you literally don't have to do anything okay guys but you want to make sure that you still file this report because the SOS or Secretary of State can involuntarily terminate your LLC simply for not failing these reports okay the same is true for any type of tax that is due for your business if you do not fail and pay the Secretary of State can and will terminate your business and then you will have to go through the process of rein statement which usually includes you paying a fine or some type of reinstatement fees and we can skip all of that mess by simply filing this free report all right guys so I'm going to go ahead and submit my report and boom there it is you have filed successfully it's literally that easy to file a public information or ownership information report it's simply just you updating your information that is on file with the secretary of state and there y'all have it just quickly what we're going to to do since I have y'all here we're going to go ahead and look up why this is even necessary okay all right y'all so this is the actual Secretary of State or comproller website that tells you exactly what a public information report and ownership information report is and why it is necessary okay so I'm just going to read through this since I have y'all here and we're going to learn together okay so who needs to file this each taxable entity formed as a corporation limited liability company limited partnership professional association and financial institution that is organized in Texas or has Nexus in Texas must file form 0512 Texas Franchise Tax public information report like y'all just saw me f annually to satisfy their filing requirements the pr is due on the annual franchise tax report due date the report must be completed and signed by an officer director or other authorized person okay now let's see and these are entities not required to file entities that are not organized in Texas entities that are exempt from Texas Franchise Tax so boom all the information that y'all have is here um on this page under Texas under Texas franchise taxes it'll tell you everything that you need to know they also have any forms and frequently ask questions all right so do not let laziness get your LLC terminated because it's not a lack of information I just gave you the information and walks you through it and it's not a level of difficulty there I mean it was super easy and super quick all right so make sure y'all taking care of those llc's so y'all can keep getting to the money and that's it y'all super duper simple but if you got any value at all from this video smash that like button go ahead and subscribe to my channel if you haven't already I would do my best to keep y'all up to date with new guidelines for business owners in 2024 especially if you are in the state of Texas because that's where I am I'm not going to follow any other guidelines outside of the State of Texas so business owners outside of the State of Texas you're on your own now I'm just playing but y'all can still come here and get free game from me so hit that Bell notification so you can get notifi when I do drop new information that could be relevant to you as a business owner or relevant to you as a real estate entrepreneur like myself y'all and until the next time tap in