Tax Preparer Permits & Licenses in San Antonio, Texas

Even if no tax is owed, a 'No Tax Due' report must be filed annually. For 2024, the no-tax threshold is $2.47 million in annual revenue.

Required for all Texas LLCs. Online filing via SOSDirect. No annual report required for LLCs.

File with county clerk if operating in one county; statewide with Secretary of State otherwise. Renew every 10 years.

Tax preparers typically do not need this unless selling products. Confirm via Comptroller.

Ongoing reporting requirement, not a license. Register for employer account first.

All LLCs must file Public Information Report (PIR) annually regardless of tax due. No separate business license exists.

Not required for standard tax preparer hiring own employees.

Tax preparation services are generally not subject to Texas sales tax. Therefore, most tax preparers do not need to collect or remit sales tax. However, if the business sells software, tax forms, or other tangible goods, registration may be required. See Texas Tax Code Chapter 151 and Comptroller Rule 3.290.

All Texas LLCs must file an annual franchise tax report (Form 05-158), even if no tax is due (‘No Tax Due’ filing). The tax applies to entities doing business in Texas. Based on 2024 rules, businesses with revenue under $2.47 million are exempt from tax but must still file.

Although not a state-level requirement, EIN is mandatory for federal tax purposes. Texas tax preparers operating as LLCs without employees may still need an EIN if they file as a corporation or expect to hire. Apply via IRS Form SS-4.

Texas does not have a state income tax, so no state-level withholding is required. However, employers must still register with the Comptroller if they withhold federal income tax. This registration is part of the Texas Taxpayer Number assignment. Employers must also comply with federal withholding (IRS Form W-4).

FUTA is a federal tax. Employers must file IRS Form 940 annually. Texas does not impose a state unemployment tax registration separate from the Texas Workforce Commission (see next entry).

While not strictly enforced, the Texas Secretary of State recommends displaying the certificate of formation or filing receipt at the business location.

All Texas employers must register with TWC if they have employees. Employers pay Texas unemployment insurance tax annually based on taxable wages and experience rating. New employers pay 0.31% on first $9,000 of each employee’s wages (2024 rate).

Not all Texas cities impose a business tax. Dallas requires a business tax registration for most businesses operating within city limits. Other cities (e.g., Houston, Austin) may have similar requirements. Tax preparers should verify with local city clerk. Dallas requires annual renewal.

Not a legal requirement, but recommended for unlicensed tax preparers. Completing the program allows inclusion in the IRS Directory of Federal Tax Return Preparers. Does not replace PTIN or state requirements.

All paid federal tax return preparers must have a valid PTIN. This applies regardless of business structure. Must be renewed annually. Tax preparers in Texas LLCs must each obtain their own PTIN if preparing returns.

Tax preparers classified as professional services; no specific tax preparer license but general business registration required. Confirm with City Business Licensing.

Required for LLCs using name other than legal name. File in county where business located.

Home occupation allowed in residential zones with permit; limits on clients, signage, traffic. Tax preparer typically qualifies as professional office.

Required for permanent signs; temporary/portable signs prohibited.

Business offices like tax preparers typically require basic operating permit if >3,000 sq ft or assembly use.

Required for all commercial alarm systems.

Professional services like tax preparation require license; revenue-based fees start at $50,000 threshold.

Tax preparer qualifies; max 25% home used, 6 client visits/week limit.

Required for wall, freestanding, projecting signs.

Texas is the only state that allows private employers to opt out of workers' comp. Employers who opt out must file a 'Texas Workers' Compensation Act, Section 406.002 Election Notice' and provide alternative benefits. Most tax preparers who are sole proprietors or partners without employees are not required to carry coverage unless they choose to.

Not mandated by Texas law for tax preparation businesses. However, landlords, clients, or professional associations may require it contractually. Recommended but not legally required.

The IRS does not mandate E&O insurance for non-attorney, non-CPA tax preparers. However, it is strongly recommended due to risk of claims related to filing errors. Some third-party e-file providers or financial institutions may require it as a condition of partnership.

The IRS suspended the Registered Tax Return Preparer (RTRP) program in 2015 after court rulings. As of now, there is no federal requirement for tax preparers to obtain a surety bond or pass a competency test unless they are Enrolled Agents (who must post a $25,000 bond). Most Texas LLC tax preparers are not required to post a bond unless they are Enrolled Agents. Enrolled Agents are federally licensed and must file Form 23, 'Application for Enrollment to Practice Before the IRS', including a $25,000 federal tax bond.

Required for any business-owned vehicle used for tax preparation activities (e.g., client visits, office transport). Personal vehicles used for business should be covered under business-rated policies or endorsements. Texas requires minimum liability coverage of $30,000 per person, $60,000 per accident, and $25,000 for property damage (30/60/25).

Not legally required by Texas law. However, if the LLC sells physical goods (e.g., tax preparation software, printed materials), general liability insurance may cover product claims. No statutory mandate exists for product liability insurance for tax preparers.

Only required if the business holds a TABC license to sell alcohol. Tax preparation businesses are not involved in alcohol service and are not subject to this requirement.

Required only for individuals seeking Enrolled Agent status. The $25,000 federal tax bond is mandated under Treasury Department Circular No. 230. This does not apply to typical tax preparers who are not Enrolled Agents. Most LLC tax preparers in Texas are not Enrolled Agents and thus not subject to this bond.

While not required for sole proprietorships without employees, most LLCs obtain an EIN for banking and credibility. For tax preparers, an EIN is necessary if they hire preparers or file business tax returns.

All paid tax preparers who e-file must register in the IRS e-Services system and obtain a PTIN. This is mandatory for any LLC offering tax preparation services involving e-filing.

Each individual tax preparer in the LLC must have their own PTIN. The LLC itself does not receive a PTIN, but all preparers must be registered. Fee updated annually; current fee confirmed via IRS PTIN registration portal.

Circular 230 governs practice before the IRS. Tax preparers must avoid fraudulent claims, ensure due diligence, and include required disclosures (e.g., "circular 230 disclaimer") on marketing materials. This is specific to tax preparation businesses.

Requires implementation of reasonable security measures to protect client data (e.g., encrypted storage, secure transmission, employee training). Mandated under IRS Publication 4557 and enforced via IRS e-file rules. Specific to tax preparers due to sensitive data handling.

All U.S. employers, including tax preparation firms, must complete Form I-9 for each employee. While not specific to tax preparers, it is a federal requirement triggered by hiring. Stored copies must be retained for inspection.

Requires payment of federal minimum wage and overtime for non-exempt employees. Tax preparers often employ seasonal staff, so proper classification (exempt vs. non-exempt) is critical. Specific to businesses with employees.

Requires eligible employers to provide up to 12 weeks of unpaid, job-protected leave for qualifying medical and family reasons. Most small tax preparation firms may not meet the 50-employee threshold, but must comply if they do.

Requires tax preparation offices to be accessible to people with disabilities, including digital accessibility of websites. Applies to all public-facing businesses, including tax preparers with client-facing operations.

Most tax preparation offices are exempt from routine inspections under OSHA’s low-hazard policy, but employers must still display the OSHA poster (Form 2203) and report work-related fatalities or hospitalizations. Not industry-specific but conditionally required.

Tax preparers must avoid deceptive advertising (e.g., guaranteeing refunds, misrepresenting credentials). Must comply with FTC’s Truth-in-Advertising standards. Specific relevance includes marketing claims about "maximum refunds" or "IRS approval.

EPA regulations do not apply to tax preparers, as they do not handle hazardous materials, generate industrial waste, or engage in regulated environmental activities.

No federal licenses from FDA, ATF, FCC, or DOT are required for tax preparers. These apply to food, alcohol, telecommunications, and transportation industries, not financial services like tax preparation.

While not a license, enrollment in EFTPS is required for businesses that make federal tax payments electronically. Relevant if the LLC hires employees or owes estimated taxes.

All Texas LLCs must file an annual report with the Comptroller. The report confirms business information such as principal office address, registered agent, and ownership. Filing is free but mandatory.

Tax preparers typically do not collect sales tax unless they sell software, forms, or other tangible goods. Most tax prep services are not subject to sales tax in Texas.

All paid tax preparers must obtain and renew a Preparer Tax Identification Number (PTIN) each year. This is a federal requirement administered by the IRS.

CE must be completed through an IRS-approved continuing education provider. The requirement supports e-file eligibility and PTIN renewal.

The notice must be displayed in a conspicuous location at each office. It informs clients of their rights under Treasury Department Circular 230.

Includes copies of returns prepared, engagement letters, and client identification documents. Electronic storage is acceptable if secure and accessible.

LLC owners taxed as sole proprietors or partners must make estimated tax payments for income and self-employment tax.

Required posters include Texas Minimum Wage, EEO, OSHA, and Family and Medical Leave Act notices. Must be displayed in a conspicuous location accessible to employees.

Not all Texas cities require a general business license. For example, Houston does not, but Austin does. Check local city clerk or economic development office.

Texas does not mandate workers' compensation insurance, but employers must either subscribe to a workers' comp plan or file a non-subscription notice with TDI.

Employers must register with TWC and file Form C-2 (Contribution Wage Report) and Form C-3 (Contribution Payment) quarterly.