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Lane, I was the one that asked you earlier about closing…

Hi Lane, I was the one...
Hi Lane,
I was the one that asked you earlier about closing down my single member LLC. I have another question. I just realized I havent even filed for sales permit in the State of Texas, exactly because I didnt feel like I was ready to launch the business. Does this still require me to file Texas Franchise Report? I didnt file annual report in December because at that time I havent filed for sales permit and didnt have any sale whatsoever.
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Answered in 17 minutes by:
3/20/2018
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,005
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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As long as the comptroller sees that there was an LLC filed with the Secretary of state, you'll have to do the franchise tax return for Texas.

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(even though it will end up with you having no tax due)

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Texas is of of those states that, because there is no STATE income tax, has a tax against the business entity itself ... called a privilege tax, so having any activity is irrelevant.

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What will happen if you don't get THIS one done is it will (1) cause a non-filing fee of $50, and (2) hold up getting the dissolution done with Sec of State, becasue there will be this unfiled return out there.

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Please don't shoot the messenger. Texas is like a lot of other states that don't have an income tax. The minute you register the entity with the sec of state, you have a filing obligation. THe good news is that there's no actual tax due.

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But again, if you never file thee no tax due return, the non filing fees just keep piling up year after year and then the sec of state has the annual cost as well ... many find after not doing ANYTHING for a few years that what could be a very simple no tax due report makes those little annual fees add up to several hundred dollars. (again, so sorry to be the messenger here)

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,005
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Customer reply replied 1 month ago
No, no...Not shooting the messenger here. I need to keep you alive. LOL! Your explanation helped clarify the separate roles of different agencies --- IRS, Comptroller. Was getting mixed up with the taxation roles of the IRS and the State Comptroller, where to file what, where and when. Just spoke with someone from State Comptroller's office and she clarified it for further for me. But you've been very helpful. Really appreciate that. Thanks again! :)
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Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,005
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Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

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