A PA LLC is a cross breed between a limited liability and a partnership, forming an LLP (limited liability partnership). An LLP is a basic partnership but with the added bonus of limited personal liability for its members.

In Texas, LLPs are formed according to several set standards, guidelines, and regulations.

Annual Report of a Limited Liability Partnership

An annual report for a LLP should be filed in accordance with the Secretary of State and this varies depending on which state the LLP was started. Keep in mind the following things when it comes to filing the annual report:

  • Deadlines. If deadlines are missed, there is the possibility that your LLP will be dissolved.
  • Methods for filing. This typically includes mail, online, and by fax.
  • Report fees. These start at $25 depending on the date it is filed.

The annual report must include the following information:

  • Name of your LLP
  • Name and address of the registered agent
  • State of origin of your LLP
  • FIN or EIN
  • Telephone number of the business
  • Address of the business
  • Description of the business and how it operates
  • Names and addresses of all managing partners
  • Signatures of the person authorized to submit the annual report

Make sure to check that all the information that is asked for-- which may be more comprehensive than the above-- is provided.

Some states also do not require annual reports to be filed. Per the Texas Secretary of State, for example, corporations, LLCs, and LLPs are not required to file an annual report. They instead just have to submit an information report upon paying their annual franchise tax.

Texas Franchise Tax rates are:

0.575% for organizations with $10 on-screen character or underneath in commemoration securing and recording E-Z Computation shape.

Texas Periodic Report:

  • TX Nonprofit-local and remote: $5
  • TX LPs-local and remote: $50
  • TX Law Enforcement Charity cosmetic touch ups with TX AG: $50

How to file your Texas Franchise Tax Report:

Per the Texas Secretary of State, it is not a requirement for corporations, LLCs, and LLPs to file annual reports. However, there is an information report that needs to be submitted along with the annual franchise tax. This goes to the Texas Comptroller Public Accounts.

The report is not a straightforward as you might think, as the tax return that needs to be filed has to include reports regarding gross receipts, dividends, interests, losses, and so on. It would help to have an accountant organize these reports for you.

Deadlines are something to look out for as well. Your first franchise tax report is due on May 15 the year after you formalized your business, and every May 15th after that.

Texas Nonprofits and Limited Partnerships will be asked for to book a Periodic Report not more than once every four years.

Does Texas have initial report requirements?

No. A report is not due until one year after you formalize your business in the state.

What are the penalty fees for a delinquent Texas Franchise Tax Report?

  • The Texas Comptroller charges a $50 penalty for a late filing
  • 5% penalty added on the tax due
  • If you still have not filed within 30 days following the due date, an additional 5% penalty is added.
  • For TX Nonprofits, the Texas Secretary of State charges $1/month late fee
  • For TX LP Periodic Reports, the State charges $25/month late fee

Who can file Texas Franchise Tax Reports?

An officer, director (LLCs in Texas), partner (partnerships), or registered agents can file.

Texas LLC Annual Filing Requirements

If you are interested in starting a Texas LLC, there are a number of documents that you need to have ready to file with the state.

State Business Tax

With regard to income taxes, majority of LLCs are pass-through tax entities. This means that the responsibility for paying federal income taxes belongs to the members of the LLC. Therefore, it is not the LLC itself that pays the income taxes, but rather the members.

It is important to take note, however, that Texas imposes a state franchise tax on majority of LLCs.

The following is a list of tips and guidelines that may help you when filing.

  • The tax is paid to the Texas Comptroller of Public Accounts (CPA)
  • The tax is based on an LLC’s net surplus, which is calculated by subtracting the members’ contributions from the net assets of the LLC.
  • If tax is due, you will need to employ a number of report forms. These can be found online.
  • Check the CPA website for further information.

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