Help with Texas Franchise Tax?

[Ben Whittaker]

Hi all, need a bit of guidance on this one. Based in Australia, Texas-specific tax laws are a bit of a mystery to me. I just got a notice for a very-overdue "Texas Franchise Tax". I started my Texas LLC late last year, purchased one property which has yet to be rented, so $0 income so far. I'm not sure what form I need to file. I was thinking (hoping?) a "no tax due information report", but the one thing that stumped me is if my LLC is a 'passive entity' or not. I have been reading through chapter 171 of the Texas Tax Code but my simple monkey brain can't make sense of it. I asked my accountant but he's Michigan based (I've got several properties there already) and he doesn't know anything about it.

Any guidance on this would be greatly appreciated. I'm also happy to pay if there is any accountants on here that want to take the lead on this one.

Cheers,

Ben.

[Will Ahrens]

For the purposes of Texas Franchise Tax, you will not be a passive entity. 
You will need to file a No Tax Due Report (05-163) as well as a Public Information Report (05-102).   I’d recommend using the State’s Webfile system if possible. 
Since you are filing after the due date (06-15-21 this year, or 10-15-21 if extended), you will need to also pay a $50 late filing penalty.