S Corp Distributions for Texas owners.

Dallas on the call, and May on a second calendar.

The practice sits in Dallas. An owner in another Texas town joins the same video call, and we are all Texans on that call, whether the company is near Dallas and Fort Worth or a long drive from both. The cash still needs a name. Wages, other cash, and a loan are names on the federal return. May is a Texas date that sits beside those names, and the May report does not pick which name the cash wears.

While the year is still open, October is early enough to correct a thin wage inside the payroll provider the company already uses. That date is payroll, and the October page is where it is told. May is the Comptroller's report on the privilege of keeping this company in Texas, set for May 15 or the next business day when May 15 falls on a weekend or a holiday. The two dates can share a calendar. Correcting the wage does not file May, and filing May does not rename the wage.

Calling the footer number reaches the Dallas practice. It reaches a counter in the reader's town only when that reader is already in our office, which a remote owner is not. The photograph on this page is the Texas State Capitol in Austin, pink granite, a dome, and the state flag, taken by Daderot and given to the public domain. That building is the only Texas landmark on this site.

An S corporation is on the filing list.

Publication 98-806, on the Comptroller site, names an S corporation among the entities that file the franchise tax. A corporation with one shareholder still files. A person who never formed a company, and who only moves cash in a personal account, generally has no franchise report. The reader of this page already has the company, which is why May is on the calendar even in a year the owner took wages and nothing else.

A corporation organized in Texas, or with nexus in Texas, files Form 05-102, the public information report, and an officer, a director, or another authorized person signs it. Form 05-167 is the ownership report used by other taxable entities, so an S corporation stays on the corporation form. The information report rides the same due date as the franchise report, including a year when the owner took wages and no tax is due, unless the company is on the Comptroller skip list. Missing that short report can cost the company the right to sue or defend in a Texas court, which is the forfeiture Tax Code sections 171.251, 171.2515, 171.252, and 171.255 describe on the Comptroller page. A new registered agent is filed with the Secretary of State, and Form 05-102 is the wrong paper for that change.

The federal return still names the wage, the other cash, and any loan. Texas does not add a personal income tax on top of that return. No state income tax on the wage, and no state income tax on the other cash, does not take May off the company calendar. The books that already separate those names are the books that feed the state report. Wages and basis stay the federal measurements. Margin is the state measurement.

The 2026 and 2027 row, kept in those years.

On a 2026 or 2027 report, revenue at or under two million six hundred fifty thousand dollars means no franchise tax and no tax report, while Form 05-102 still goes in unless the company is on the skip list. In those same years a retailer or wholesaler is charged 0.375 percent, any other business is charged 0.75 percent, and compensation stops at four hundred eighty thousand dollars per person, which is the cap on the wage this site already puts first. EZ is the shorter math when annualized total revenue is twenty million dollars or under, it uses 0.331 percent, and taking it means the company gives up the margin deductions. Past that no tax due line, or whenever a margin deduction is the point of the filing, the long form is the report that has to be prepared. Confirm the row on the franchise home page before a later year is filed from memory.

Publication 98-806 lets the owner, on the long form, keep seventy percent of total revenue, or subtract what the goods cost to acquire or produce, or subtract compensation, or subtract one million dollars, and only one of those four is used. Federal revenue is the starting pile on that report, and Tax Code section 171.1011 names the amounts taken back off before margin is computed. A company whose work is services, with no goods to count, often finds that cost path empty, aside from the industry exceptions in section 171.1012. Compensation on this math counts the pay on the wage statements, leaves 1099 labor out, and also leaves out the payroll taxes the company itself paid. Health coverage that already rides on the wage line for an owner over two percent sits inside that compensation figure, up to the per person cap. Other cash the owner took is not waved into compensation by a draw label in the software.

Once the path is chosen, Texas keeps only the share of margin that Texas gross receipts support. A combined group uses one path for every member, and each member organized in Texas or with nexus still files its own information report. EZ remains available at or under twenty million dollars only when the owner accepts the deductions that choice gives up.

The 2024 and 2025 row stays inside those years.

For the 2024 and 2025 report years the no tax due line is two million four hundred seventy thousand dollars, and the compensation limit per person is four hundred fifty thousand dollars. The rates and the EZ revenue line on the franchise home page match the later years. A 2024 figure does not get pasted into a 2026 paragraph. If the open project is an older report year, read that row on the live page and keep it with that year.

An extension is a payment, not a new name for the cash.

An extension of the May report is a payment or a Comptroller form that arrives by the original due date, and it does not give the cash a new federal name. The payment aimed at that extension is generally all of the prior year tax or nine tenths of the tax the current report will show. A company in its first annual report, because it only became subject in the prior year, cannot aim the payment at all of that prior year. Webfile or Form 05-164 is how a company the state has not moved onto electronic funds transfer asks for time, and that route runs to November 15. Once the company paid the state ten thousand dollars or more in the previous state fiscal year, the payment method is electronic funds transfer, the first extra date is August 15, and a second extra date runs to November 15. At five hundred thousand dollars paid to the state or above, time is requested only by a TEXNET payment under code 13080, and Form 05-164 stays off that request. Read the TEXNET hour on the extensions page the morning the payment goes out, because this page does not reprint that hour. Ending Texas nexus starts a 60 day clock for the last report, and meeting the payment rules adds 45 days onto that original final date.

A late information report costs fifty dollars on its own. Tax that arrives in the first 30 days after the due date costs an extra 5 percent, and tax that arrives later than that costs an extra 10 percent. Interest on the unpaid tax begins on day 61, and the percent itself stays on the Comptroller interest page rather than being copied here. The filing rules and the information report rules are on the filing requirements page and the information report page.

Goods, if the company sells them, are a different account.

Some of these companies also sell goods. Sales tax, when it applies, is a separate Comptroller account from the franchise report. This page does not decide which of those sales are taxable, and it does not print a city rate. The sales tax home page is the place that ruling lives. A service the company performs is not given a taxable or exempt label here, because that ruling was not fetched onto this page.

A signed audit, a review, or a compilation of the financial statements belongs with a license holder. What this page will prepare is the franchise report from months that have already closed. A fight about the tax that has to be carried by a lawyer stays with that lawyer. The wage, the other cash, and any loan keep the names the federal return already gave them.

Bring the open month and the Texas date that is sitting on it. The wage, the other cash, and the basis worksheet can be on the screen with the May report. The report does not rename the cash. The cash does not cancel the report.