Hey there, startup owner! If you’re running a business in Austin, Texas, you know there’s always something new to learn—especially when it comes to taxes. Franchise tax filings might seem complicated, but with the right plan, they don’t have to be stressful. As a trusted Austin, Texas CPA, we’re here to guide you through the process step by step so you can stay compliant and focused on growing your business.
Let’s break it down into six simple steps to help you prepare for your franchise tax filings with confidence.
1. Start with the Franchise Tax Questionnaire
When you register your business in Texas, you’ll receive a Franchise Tax Accountability Questionnaire. This form is important because it determines whether your business needs to file franchise taxes.
- What You Should Do: Fill out the questionnaire carefully and submit it on time. Not sure where to start? A CPA in Austin, Texas can help you get it right the first time.
2. Know Your Filing Deadlines
Missing deadlines can lead to penalties and unnecessary stress, and no one wants that. In Texas, franchise tax reports are usually due on May 15, unless that date falls on a weekend or holiday.
- What You Should Do: Mark your calendar now. Better yet, let an Austin accounting service track deadlines for you so nothing slips through the cracks.
3. Understand Your Taxable Margin
Your taxable margin is the basis for calculating franchise taxes in Texas. You can calculate it in different ways, such as total revenue minus the cost of goods sold, compensation, or a flat 70% of revenue. Picking the right method can save you money.
- What You Should Do: Work with an Austin small business accountant to figure out which calculation works best for your business.
4. Organize Your Financial Records
Accurate financial records are the backbone of your franchise tax filing. From income statements and payroll records to balance sheets, having everything in order will make the process so much smoother.
- What You Should Do: Stay organized all year long. A small business CPA in Austin can help you keep your records neat and ready for tax season.
5. File Using the Right Form
The type of franchise tax form you need depends on your business’s revenue:
- No Tax Due Report: For businesses with revenue below the no-tax-due threshold.
- EZ Computation Report: For businesses with revenue under $20 million that qualify for simplified filing.
- Long Form Report: For businesses above the simplified filing threshold.
- What You Should Do: Not sure which form to use? An experienced Austin tax accountant can help you choose the right one and ensure it’s completed accurately.
6. Plan for the Future
Franchise taxes aren’t a one-and-done deal. As your business grows, your tax obligations might change, so planning ahead is key.
- What You Should Do: Work with a proactive tax advisor in Austin to create a long-term strategy that keeps your business prepared for the future.
Why Choose Insogna CPA?
We get it—franchise tax filings can feel overwhelming, especially when you’re focused on running your business. At Insogna CPA, we’ve helped startups and small businesses across Austin, Texas, simplify their taxes and avoid costly mistakes. Whether it’s meeting deadlines, organizing records, or calculating your taxable margin, we’ve got your back.
Let’s Simplify Your Franchise Tax Filings
You don’t have to navigate franchise tax filings alone. With Insogna CPA by your side, you’ll have expert guidance every step of the way.
Ready to simplify your franchise tax filings? Contact Insogna CPA today and work with one of the top CPA firms in Austin, Texas. Let us handle the details so you can focus on growing your business!