NC and TX LLC

[Super Mom]

Ok, just now starting to wrap my head around this one. First Question, I assume their is no TX return to go with the 1065? I know there is a NC403, the income expenses and assets are apportioned on the NC403? First multi state 1065 I've ever done and advice is very welcome!

[Super Mom]

Oh I'm seeing it looks like the apportionment factor is applied on 403. Is that right?

[Super Mom]

Ok, from my limited knowledge, it looks as if I can apportion income based on GS105-1304 in 'B" on page 2 of the NC403? That sounds simple! What about taxes is simple???? Anyone in NC done this?

[Lion]

Texas has a franchise return for LLCs with a small tax.

[Super Mom]

Thanks so much, I thought "franchise" corp not LLC---THANKS!

[Super Mom]

I looked at that TX franchise return and this LLC only has about 100,000 in total revenue, so thinking they do not need to file. Am I right?

[Lion]

I don't have any clients doing business in TX, so I suggest you contact the state. But, it's clear from the instructions that your client may not owe any tax. It does appear that he needs to file a "no tax return" electronically.

[Super Mom]

My thoughts exactly! Thanks!

[DaveinTexas]

Tx llc

I looked at that TX franchise return and this LLC only has about 100,000 in total revenue, so thinking they do not need to file. Am I right?

Usually, every LLC and Corp doing business in TX must file a Franchise Report (some LLPs too). I am assuming your client has a Taxpayer ID and has registered with the TX SOS (registered as either a TX LLC or a Foreign Entity if registered in NC). Your client will have an obligation to file a Franchise Tax every year, due May 15th; if an extension is filed the due date is November 15th.

There is an obligation to file every year, regardless of income. However, you can file a NO TAX DUE REPORT (see the link below) if your client's gross income is less than $1,130,000, as the form implies, there is no tax due.

So, file every year, but more than likely, no tax will be due.

Here's the link to the form: https://comptroller.texas.gov/forms/05-163-a-18.pdf

Good luck!

[Happy Camper]

Pir

Usually, every LLC and Corp doing business in TX must file a Franchise Report (some LLPs too). I am assuming your client has a Taxpayer ID and has registered with the TX SOS (registered as either a TX LLC or a Foreign Entity if registered in NC). Your client will have an obligation to file a Franchise Tax every year, due May 15th; if an extension is filed the due date is November 15th.

There is an obligation to file every year, regardless of income. However, you can file a NO TAX DUE REPORT (see the link below) if your client's gross income is less than $1,130,000, as the form implies, there is no tax due.

So, file every year, but more than likely, no tax will be due.

Here's the link to the form: https://comptroller.texas.gov/forms/05-163-a-18.pdf

Good luck!

Dave is correct but I would like to add that a Public Information Report (PIR) is also required for businesses with a nexus in Texas. A link to that form is below.

https://comptroller.texas.gov/forms/05-102-a.pdf

[DaveinTexas]

Nice catch

Good point HC, if you omit that pesky PIR (Public Information Report), the TX Comptroller will consider the report incomplete and could put your client's company in "Not Good Standing" or what is referred to as "Not Active" or "Forfeited" status.