11/14/2024
If you are needing to register or file on any of the below services that M&T Professional Tax Services LLC provides: LLC Registration, Filing BOIR, Filing Franchise Taxes, Filing Business Taxes 1120,1120-S, 1065, 1040/Schedule C, or need additional information please give us a call at (214)412-3007.
What is an LLC and why is best to register you business as an LLC:
A limited liability company (LLC) is a business structure that offers limited liability protection and pass-through taxation. As with corporations, the LLC legally exists as a separate entity from its owners. Therefore, owners cannot typically be held personally responsible for the LLC’s debts and liabilities.
The pass-through taxation of an LLC means that business income is not taxed at the entity level. Instead, any LLC income or loss as shown on this return is passed through to the owner(s). The owners, also called members, must then report the income or loss on their personal tax returns and pay any necessary tax.
BOIR and Penalties:
Here are some key details about BOIRs:
Who must file: Most new entities formed in 2024 must file a BOIR within 90 days of formation. Reporting companies include privately held companies, whether domestic or foreign, that are registered to conduct business in the U.S. Publicly traded companies are not subject to the CTA.
If you fail to report your Beneficial Ownership Information Report (BOIR), you could face civil penalties of up to $591 per day for non-compliance, and in cases of willful violation, criminal penalties including a fine of up to $10,000 and/or imprisonment for up to two years.
Bookkeeping:
Bookkeeping for business owners involves a number of tasks, including:
Separating finances
Keeping business and personal finances separate makes it easier to record income and expenses, and to file taxes.
Creating financial statements
Financial statements show where money is coming in and going out of the business, and provide insight into its performance.
Do bookkeeping and taxes relate to one another? “absolutely.”
1. Uncovering potential deductions based on knowledge of all your expenses
2. Making tax planning and tax filing easier by carrying over bookkeeping financial records into the forms you’ll need at tax time
3. Receiving year-round support from your bookkeeping and tax team to keep you on track and up to date
Annual Franchise Tax Reports Due Dates:
The annual franchise tax report is due May 15.
If the entity is forfeited for failure to file a franchise tax report:
When an entity fails to file a franchise tax report and/or pay franchise taxes, the secretary of state forfeits it under the Texas Tax Code. An entity forfeited under the Tax Code can reinstate at any time (so long as the entity would otherwise continue to exist) by (1) filing the required franchise tax report, (2) paying all franchise taxes, penalties, and interest, and (3) filing an application for reinstatement.
