I think I was filing my LLC paperwork wrong for 2 years

I mean, I started a small cleaning business in Austin back in 2021 and just assumed my yearly franchise tax report was the same as my actual tax return. It took a random conversation with my barber, of all people, to realize I had been confusing the comptroller's office with the IRS the whole time. He mentioned his accountant filed a separate thing for him and I just stared at him for a solid minute. Turns out I owe about $400 in late filing penalties from 2022 and 2023 because I never submitted the public information report either. Has anyone else mixed up state and federal filings like this, or am I the only one who skipped business law basics?

2 comments

2 Comments

baker.christopher5d ago

Wait, your barber figured this out before you did? I mean, I get that barbers hear everything, but that is a wild way to find out you have been doing your business filings wrong for two years. And $400 in penalties is not pocket change either, that hurts. Honestly, I think a lot of small business owners mix up the state and federal stuff. The franchise tax report and the public information report sound like they could be the same thing if you are not reading the fine print. It is way too easy to just click through and assume you covered it. The real kicker is that you probably paid the franchise tax, so you thought you were all good. But the comptroller wants that separate piece of paper, and the IRS wants their own thing. It is like two different bosses yelling at you for not showing up to two different meetings on the same day. At least you caught it now instead of finding out during an audit. That would have been a much bigger headache than $400.

kai_burns734d ago

Boy, that barber story really is something else. Most folks pay for a good accountant and still miss stuff, but this guy got better advice from a haircut than what they were paying a professional for. What really gets me is how these state forms are designed to trip you up. They know small business owners are juggling a dozen things at once, and they make two reports that sound nearly identical on purpose. You file one, think you are done, and then bam, the other one sneaks up on you. An audit would have been a nightmare, sure, but the real shame is that this mistake probably meant they were a week or two late on paying actual taxes too. Interest on top of penalties adds up faster than people expect. This $400 bill is basically tuition for a lesson they will never forget.