How to Get an XT Number for the Texas Franchise Tax

The Texas Franchise Tax is an annual business privilege tax levied by the Texas Comptroller of Public Accounts on entities formed or doing business in Texas. This tax, often called a “margin tax,” requires businesses to file a report annually, typically by May 15th. Businesses need a unique identification number to interact with the state tax system and fulfill reporting obligations.

Identifying Your Texas Taxpayer Number

The “XT number” refers to the “Texas Taxpayer Number” or “Comptroller’s Taxpayer Number,” an 11-digit identification number assigned by the Texas Comptroller of Public Accounts. This number acts as a unique identifier for entities in communications and filings with the Comptroller’s office, especially for businesses subject to the Texas Franchise Tax.

While a Federal Employer Identification Number (FEIN or EIN) is a nine-digit number issued by the IRS for federal tax purposes, the Texas Taxpayer Number is distinct and state-assigned. The FEIN is generally a prerequisite for obtaining a Texas Taxpayer Number, which is necessary for conducting business operations and ensuring tax compliance in Texas.

Information Required for Texas Taxpayer Number Registration

Businesses need to gather specific information and documentation for Texas Taxpayer Number registration. A Federal Employer Identification Number (FEIN) is a primary requirement, as it links your state and federal tax identities.

Businesses must provide their legal business name, along with any assumed names or “Doing Business As” (DBA) names. The entity type, such as a Limited Liability Company (LLC), Corporation, Partnership, or Sole Proprietorship, is necessary for registration. The date of formation or the date of registration in Texas is also required.

The principal business address, including physical and mailing addresses, is required. Businesses should also identify their primary business activity, often categorized by a North American Industrial Classification System (NAICS) code. Contact information for a responsible person, including their name, title, phone number, and email address, will be needed to complete the application.

Steps to Obtain Your Texas Taxpayer Number

Obtaining a Texas Taxpayer Number involves the online system provided by the Texas Comptroller of Public Accounts. Businesses can initiate the registration process through the Comptroller’s website, often by creating an eSystems profile. This secure online portal allows businesses to manage various state tax accounts.

Once logged into the eSystems portal, users can select the option to add tax accounts or register for new taxes. The system will prompt for the necessary information, which should have been gathered beforehand. For businesses that may have already registered but need to retrieve an existing Texas Taxpayer Number, the Comptroller’s website offers a search function where they can use their FEIN, legal business name, or Texas Secretary of State file number.

After submitting the required information for a new registration, the Texas Taxpayer Number may be assigned immediately, or there could be a processing period. The Comptroller’s office typically provides this 11-digit number upon successful registration. If any issues arise or the number cannot be found online, contacting the Comptroller’s office directly by phone is an option.

Using Your Texas Taxpayer Number

Once obtained, the Texas Taxpayer Number is used for various state tax obligations. Its primary use is for filing the annual Texas Franchise Tax report. This includes submitting forms such as the Public Information Report (Form 05-102) for corporations, LLCs, and certain other entities, or the Ownership Information Report (Form 05-167) for partnerships and other taxable entities.

Beyond the Franchise Tax, this number also serves as the primary identification for other state tax purposes, such as sales and use tax permits. The Texas Taxpayer Number is used for all official communications and transactions with the Texas Comptroller of Public Accounts, ensuring accurate record-keeping and compliance.