In this video, Lomaris Per explains the 2025 changes to Texas franchise tax filing requirements that take effect for the 2024‑labeled returns (covering the 2023 tax year). The key change is the elimination of the No Tax Due report for entities whose annualized total revenue is under $2.47 million; only the Public Information Report (PIR) remains mandatory. The presenter walks through how to compute annualized total revenue, using three numerical examples that show how the length of a business’s operating period can push revenue above or keep it below the $2.47 M threshold. He clarifies the concept of combined‑group (unitary) reporting, noting that it applies only to affiliated entities that file as a single unit and is irrelevant for most single‑member LLCs. The PIR filing details are reiterated: unchanged form, due May 15 (or next business day if the 15th falls on a weekend/holiday), $15 filing fee ($5 for nonprofits), and the ability to update addresses, directors, and registered agents. While there is no longer a monetary penalty for late PIR filing, failure to file can lead to forfeiture of the entity and reinstatement fees from the Secretary of State. The video also explains the confusing labeling of the “2024 tax return” which actually reports the 2023 tax year. Viewers are directed to a penalty‑waiver/refund form linked in the description, with instructions for requesting waivers or refunds for past penalties. Finally, the presenter promotes a June Tax Bootcamp Challenge and encourages viewers to sign up for weekly business tips on his website.
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So you notice that Texas changed their franchise tax return law and now have different requirements— less, actually, to be more specific. And you're wondering what the difference is between what they used to require back in 2023 and going further back to any prior year compared to this year starting 2024 and going forward. We're going to talk about that now just so that you have the details and know exactly what to expect. So the new law requires most of y'all to just have to file the Public Information Report. And I know y'all are so excited that they changed this law because it actually cuts your workload in half. You no longer have to file a No Tax Due report if your company made less than $2.47 million of annualized total revenue. Now you might be wondering, what is annualized total revenue? The annualized total revenue only really affects a newer business or a business that is getting ready to shut down, filing their last tax return. So what is annualized total revenue? It basically means that from the time that you started your business to the last day of the year that you were in business. You would divide your total income by the number of days that you were actually in business. Then you would multiply that by 365 days so that they can figure out on an annual basis what would you have made had you been in business the entire year. Just as kind of a gauge to go by, let's say your business made $100,000 and you were in business for 120 days, which is about 4 months. You would take the $100,000 divided by the 120, that equals $833.33, multiply that by 365 days, and the total would come out to $304,166.67 once you round it up. But as you see, even at that amount for working that many days, you would only be at $304,000 versus the versus the threshold, which is $2.47 million. Now, take for example, you know, how does that, how does that affect you? Let's say if you had made the same $100,000 and you made it in, say, 2 months, right? Let's say 2 months. So in 2 months, we'll divide the $100,000 by 60 days, and then that equals $1,666. Then you'll multiply that times the year, which is 365 days, and that equals $608,000 approximately, which means that you still wouldn't have reached the $2.47 million. Let's take it a little bit further. Let's take the $100,000, same $100,000, and let's say you only were in business for 2 weeks, 14 days. Let's divide it by 14 days. If you divide the $100,000 by 14 days, and that comes to $7,142, multiply that by 365 days, That equals $2,607,142. So that would've caused you to have to file your EZ or long form report because you would have exceeded the threshold. And the threshold again here is $2.47 million, and this is $2.6 million plus. I think this deserves a whole video by itself because people are, are fretting over what do they mean by that? And then the other question I'm getting is about, uh, let's see what they say, combined groups. So the question is about combined groups. The question is, is what are they talking about? Good question. So let's look that up. A combined reporting is, uh, the definition of it based on what the Comptroller has to say is that taxable entities that are a part of an affiliated group engaged in a unitary business must file a combined group report in lieu of individual reports. Okay, so basically you have multiple businesses that work like they work together, right? You may have one business that services another part of your business that services another one of your businesses, and they all work together collaboratively, but they represent basically more like a unit. Like take for example, like Pepsi. Pepsi has all these different divisions that they have of their business, but they don't have to file an individual tax return for each one. In this case, as far as what the Comptroller is saying, the Comptroller is saying you can file a combined report for all of those different divisions, all those different sub-companies, if you will. So that's what they mean when they say a combined group. So more than likely, if you're just working a single-member LLC, you don't have more than one business, this absolutely does not apply to you. You don't even have to worry about it. So unless your business is making $2.47 million overall or it has an annualized revenue, which means if you're a newer business that has a shorter year or you've got an older business that you're filing the last tax return for and you've got a short year, generally speaking, that's the only time this would apply. So if you make less than $2.47 million, it's safe to assume that you haven't exceeded the threshold and you won't be required to file an EZ or a long-form tax return. They completely deleted the No Tax Due report. So what's left? Let's see. The Public Information Report that you have to file has not changed at all. It's literally the same as what you've been filing every year, so it's— there's no surprises there. The due date is still the same, May 15th of every year, and if the 15th is on a weekend or a holiday, it falls on the following business day. When you file the Public Information Report, you'll also be able to update your business address If you need to update any directors' addresses, you can do that as well. If you need to update the directors themselves, you can also update that here on the public information report. But remember, if you do have a new registered agent, you do need to update that here on this public information report, but you will also have to update that directly with the Secretary of State because they're the ones that update that information overall in the public records. And as of the time of this video, you will have to pay the fee, which is $15. If you're a nonprofit, it's only $5. So you might be wondering, if you don't file on time, are there any penalties anymore? I called the Comptroller's Office and I spoke to a couple of different representatives, and they each said that there is no penalty as far as an actual penalty that they used to charge. There will no longer be a penalty for not filing your Public Information Report, which is part of your franchise tax return obligations. However, that doesn't mean there's no repercussions overall. If you fail to file your Public Information Report, you can still put your business at risk of being forfeit, which means you no longer would have the right to conduct business in Texas, and you don't want that. That means they would cancel your LLC and you would have to go through the process of getting it reinstated. I will be doing a different video on the steps to get reinstated, but for now, just know there's a process to it and the Secretary of State will charge you fees on their end to get reinstated. So make sure you file your public information report on time because you want to make sure you're able to conduct business legally and not put your business at risk of being forfeit. One of the questions I've heard asked several times in the comments is about the tax year versus the actual year that it's talking about. As far as the actual tax return year that you're needing to file, it is called a 2024 tax return. However, it's referring to your 2023 tax year, meaning January 1st, 2023 to December 31st, 2023. The franchise tax return is the only tax return that I've noticed that labels their tax return for a future year, or in their minds maybe it's the current year, for a past year. The IRS doesn't even do that. When they say it's time to file your 2023 tax return, it's due April 15, 2024. So I hope this video was helpful to you guys. For any of y'all that still have old tax returns that you're needing to file and you owe penalties or you previously paid some penalties for filing late, there is a form that I put the link to in the description that you can click on and it'll give you access to the form that you can fill out in order to get the penalties waived or refunded. So if you haven't filed yet and you haven't paid yet, then you can get them waived if you fill out that form and submit it, as long as they approve it. And all you have to do is fill it out and email it to the Comptroller. If you did file and you already paid the penalty but you'd like to get a refund for some of those penalties. All you have to do is click on the link in the description and you'll get access to the form. You'll also see a filled out version of the same form, that way you have something to go off of as you fill out yours. You're able to request multiple tax period refunds and waivers, so make sure you utilize that, save yourself some money, or get a refund for some of the money you've already spent. And I hope that helps you guys. Before I go today, I just want to let you guys know I'm also holding a tax Tax Bootcamp Challenge in June. It'll be on the third week of June. If you want to know more about that, make sure you go to lomarisper.com. That's my name, L-O-M-A-R-I-S-P-E-R dot com. Just go there, sign up for the weekly business tips. Anybody who signs up will get updates on the information for how to sign up for the Tax Bootcamp Challenge. It's going to be a 5-day challenge in June. I'd love for y'all to share with me what it is that's important to you regarding taxes that you'd like to learn or to know more about. And based on your answers, I'm going to put together a program for a whole challenge where we dive deep in into the process of doing some hands-on how to set up certain accounts, pay the IRS if needed, uh, how to find certain information when you need it when it comes to the IRS and new laws. If you still have some more questions about filing your franchise tax public information report, make sure you watch the franchise tax Q&A video because it's— I'm going to go over a lot of the questions that you guys had after watching my franchise tax return video. I'm also going to be doing a shout out to thank everybody for showing me some love in the YouTube comments after watching the franchise tax videos. Until next time, if you're interested in staying connected, you can always go to my website at lomarisper.com and sign up for my free weekly business tips. I can't wait to hear from you guys. Be sure and put a comment below if there's anything that I missed that you wanted to know about, and make sure you watch that other video that covers almost all the questions that I got asked in previous franchise tax videos. I hope this was helpful. Until next time, thank you for watching.
