Perhaps the most important annual task is the filing of the annual report because failing to file the annual report will result in the forfeiture of the LLC.

If the LLC sells taxable goods or taxable services, it will need to (1) apply for a Texas sales tax permit; (2) collect sales tax from its customers; and (3) remit the collected taxes to the state either monthly, quarterly, or annually. Sales taxes can be reported and paid via the Texas Comptroller’s webfile system.

If the LLC has W-2 employees, then the LLC will need to file quarterly and annual reports with both the Texas Workforce Commission and the Internal Revenue Service. It is important to note that employment taxes are not paid/reported for non-employees (i.e., payments to 1099 contractors or distributions to owners).

An LLC must report its profits or losses annually to the IRS. The manner in which the LLC must report and the due date of the report (aka return) depend on how the LLC is taxed. A single-member LLC reports profits on the LLC’s owner’s return, while a multi-member LLC files a partnership return no later than March 15 each year. See how an LLC is taxed for more details.

Texas LLCs are no longer required to hold an annual meeting, but they are still recommended. Learn more about annual meetings for a Texas LLC.