Tax Registration Guide
Navigate federal, state, and local tax requirements for your El Paso business. This comprehensive guide covers all tax registrations, filing requirements, and important deadlines.
Important Note
Tax requirements vary based on your business structure, industry, and activities. This guide provides general information. Consult with a qualified tax professional or CPA for advice specific to your situation.
Required Tax Registrations
Employer Identification Number (EIN)
Internal Revenue Service (IRS)
Who Needs This
Required for businesses with employees, partnerships, corporations, and LLCs
Cost
Free
How to Apply
Apply online at IRS.gov/EIN - instant approval
Deadline
Before hiring employees or opening business bank account
Key Details
- Used for federal tax filing and reporting
- Required to open business bank accounts
- Needed for hiring employees
- Can be obtained immediately online
Texas Sales Tax Permit
Texas Comptroller of Public Accounts
Who Needs This
Required if selling tangible goods or taxable services
Cost
Free
How to Apply
Register online at Comptroller.Texas.gov
Deadline
Before making first sale
Key Details
- El Paso sales tax rate: 8.25% (6.25% state + 2% local)
- File monthly, quarterly, or annually based on sales volume
- Must collect and remit sales tax to state
- Penalties for late filing or non-compliance
Texas Franchise Tax
Texas Comptroller of Public Accounts
Who Needs This
Required for most business entities (LLCs, corporations, partnerships)
Cost
Based on revenue (no tax if under $2.47M annually)
How to Apply
Register when filing formation documents
Deadline
Annual report due May 15th
Key Details
- Calculated on taxable margin (revenue minus deductions)
- Rate: 0.375% for most businesses, 0.75% for wholesalers/retailers
- Small businesses under threshold pay $0
- File annual franchise tax report even if no tax owed
Federal Income Tax
Internal Revenue Service (IRS)
Who Needs This
All businesses must file federal income tax returns
Cost
Varies based on business structure and income
How to Apply
File annually using appropriate tax forms
Deadline
March 15 (partnerships/S-corps) or April 15 (sole props/C-corps)
Key Details
- Sole proprietors: Schedule C with Form 1040
- Partnerships: Form 1065
- S Corporations: Form 1120-S
- C Corporations: Form 1120
Employment Taxes
IRS & Texas Workforce Commission
Who Needs This
Required if you have employees
Cost
Varies based on payroll
How to Apply
Register with IRS and TWC
Deadline
Before hiring first employee
Key Details
- Federal: Social Security, Medicare, unemployment tax
- Texas: Unemployment insurance tax
- Withhold income tax from employee paychecks
- File quarterly payroll tax returns
El Paso Property Tax
El Paso Central Appraisal District
Who Needs This
Required if you own business property or equipment
Cost
Based on property value
How to Apply
File business personal property rendition
Deadline
April 15th annually
Key Details
- Applies to real estate, equipment, inventory, furniture
- Must file rendition listing all business property
- Exemptions available for certain property types
- Failure to file can result in 10% penalty
Step-by-Step Registration Process
Obtain Your EIN
Start by getting your federal Employer Identification Number from the IRS. This is free and can be done online in minutes at IRS.gov/EIN.
Register Business Structure
File your business formation documents with the Texas Secretary of State (if LLC, corporation, or partnership). This automatically registers you for franchise tax.
Apply for Sales Tax Permit
If selling goods or taxable services, register for a sales tax permit through the Texas Comptroller website. You'll receive your permit number immediately.
Register for Employment Taxes
If hiring employees, register with the IRS for federal employment taxes and with Texas Workforce Commission for state unemployment insurance.
File Property Rendition
Submit business personal property rendition to El Paso Central Appraisal District by April 15th listing all business assets.
Set Up Tax Calendar
Create a calendar with all tax filing deadlines (monthly sales tax, quarterly payroll, annual income tax, etc.) to avoid penalties.
Tax Filing Calendar
Stay compliant by knowing when each tax filing is due. Missing deadlines can result in penalties and interest charges.
| Frequency | Tax Type | Due Date | Applies To |
|---|---|---|---|
| Monthly | Sales Tax | 20th of following month | High-volume sellers |
| Quarterly | Sales Tax | 20th of month after quarter ends | Most businesses |
| Quarterly | Payroll Taxes | Last day of month after quarter ends | Employers |
| Annually | Franchise Tax | May 15th | LLCs, corporations, partnerships |
| Annually | Property Rendition | April 15th | Business property owners |
| Annually | Federal Income Tax | March 15 or April 15 | All businesses |
El Paso Tax Considerations
Local Tax Rates
- Combined Sales Tax:8.25%
- State Portion:6.25%
- Local Portion:2.00%
- Property Tax Rate:~2.5% of value
Tax Incentives
El Paso offers various tax incentives for new and expanding businesses:
- Property tax abatements
- Foreign Trade Zone benefits
- Enterprise Zone Program
Border Business Taxes
If conducting cross-border business with Mexico, be aware of additional tax considerations including customs duties, import/export taxes, and international tax treaties.
Record Keeping
Maintain detailed records of all income, expenses, and tax payments for at least 7 years. Use accounting software to track transactions and generate reports for tax filing.
Need Tax Assistance?
Tax compliance can be complex. Consider working with a local El Paso CPA or tax professional to ensure you meet all requirements and take advantage of available deductions.
IRS Small Business Resources
Free tax workshops and guidance
IRS.gov/SmallBusiness
Texas Comptroller
State tax information and filing
Comptroller.Texas.gov