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An EIN (Employer Identification Number) is a federal tax ID issued by the IRS used to identify a business for tax purposes. Texas businesses commonly need an EIN to hire employees, open business bank accounts, and register for state taxes with the Texas Comptroller. Applying is free and can be done in minutes online at irs.gov.
Many Texas businesses will need a federal Employer Identification Number (EIN) — and in many cases, separate registration with the Texas Comptroller of Public Accounts — before they can hire employees, open a business bank account, apply for licenses, or file taxes. This guide explains what an EIN is, which businesses commonly need one, how to apply, and how federal tax registration connects to Texas-specific obligations including sales tax permits, franchise tax, and industry-specific registrations.
- What Is an EIN in Texas?
- Who Needs an EIN in Texas?
- How to Apply for an EIN (Step-by-Step)
- Federal Tax Obligations Overview
- EIN vs. Texas Tax ID Number — Understanding the Difference
- Texas Comptroller Registration
- Texas Sales Tax Permit Explained
- Texas Franchise Tax Overview
- Other Texas-Specific Tax Registrations
- Step-by-Step: Getting Tax-Registered in Texas
- Common EIN Mistakes to Avoid
- Frequently Asked Questions
What Is an EIN in Texas?
An Employer Identification Number (EIN) — also called a Federal Tax Identification Number (FTIN) or Federal Employer Identification Number (FEIN) — is a unique nine-digit number assigned by the Internal Revenue Service (IRS) in the format XX-XXXXXXX. It functions as a business's tax identification number at the federal level, in the same way a Social Security Number (SSN) identifies an individual taxpayer.
The IRS uses the EIN to track federal tax obligations including income tax, employment taxes, and excise taxes. Beyond the IRS, EINs are routinely required by banks, state agencies, vendors, clients requiring 1099 reporting, and licensing authorities.
An EIN is required for most Texas businesses and is entirely separate from your Texas state tax registration.
Who Needs an EIN in Texas?
Not every business is required to obtain an EIN, but most will need one at some point. The IRS generally requires an EIN when any of the following apply to a business:
| Situation | EIN Generally Required? |
|---|---|
| Business has or plans to hire employees (W-2 workers) | Yes |
| Business is structured as a corporation or partnership | Yes |
| Business is an LLC with more than one member | Yes |
| Single-member LLC electing to be taxed as a corporation | Yes |
| Business files excise tax returns (fuel, tobacco, alcohol, firearms, etc.) | Yes |
| Business withholds taxes on income paid to a non-resident alien | Yes |
| Business is a trust, estate, nonprofit, or plan administrator | Yes |
| Sole proprietor or single-member LLC, no employees, taxed as individual | Not required by IRS, but often needed in practice (see below) |
Do I Need an EIN for an LLC in Texas?
This is one of the most common questions from Texas LLC owners. The answer depends on how the LLC is structured and taxed:
- Multi-member LLC: Yes — the IRS requires an EIN because the entity is treated as a partnership by default.
- Single-member LLC electing S-Corp or C-Corp status: Yes — required.
- Single-member LLC with no employees, taxed as individual (disregarded entity): Not required by the IRS, but in practice most Texas banks and the Texas Comptroller will require one. Most Texas LLC owners obtain an EIN regardless of IRS requirements.
A single-member LLC that has not elected corporate tax treatment is classified as a disregarded entity — its income and expenses flow through to the owner's personal tax return on Schedule C. Even so, practical requirements at the state and banking level make obtaining an EIN advisable for virtually all Texas LLCs.
Most Texas LLCs — single-member or multi-member — will benefit from obtaining an EIN, even when the IRS does not strictly require one.
How to Apply for an EIN in Texas (Step-by-Step)
The IRS offers four methods for obtaining an EIN. The online application is the fastest, most common, and recommended approach for Texas businesses with a U.S. address.
Online Application — IRS EIN Assistant (Free, Immediate)
Available at irs.gov. The online assistant walks through a series of questions and issues an EIN immediately upon completion. Available Monday through Friday, 7:00 AM to 10:00 PM Eastern Time. The responsible party must have a valid U.S. Taxpayer Identification Number (SSN, ITIN, or existing EIN). Only one EIN may be obtained per responsible party per business day.
Fax Application — IRS Form SS-4 (Approximately 4 Business Days)
Complete IRS Form SS-4 (Application for Employer Identification Number) and fax it to the IRS. Businesses with a principal place of business in the U.S. may fax to (855) 641-6935. A response is typically received within four business days.
Mail Application — IRS Form SS-4 (4–5 Weeks)
Mail a completed Form SS-4 to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. Processing by mail takes approximately four to five weeks. This method is the slowest option and is generally used only when other methods are unavailable.
Telephone — International Applicants Only
Business entities located outside the United States with U.S. tax obligations may call (267) 941-1099 (not toll-free), Monday through Friday, 6:00 AM to 11:00 PM Eastern Time. The EIN is issued during the call.
What Information Is Needed to Apply
Before beginning an EIN application, gather the following:
- Legal name of the entity (exactly as registered with the Texas Secretary of State, if applicable)
- Trade name or DBA, if different from legal name
- Mailing address and physical location of the principal business in Texas
- Entity type (sole proprietorship, LLC, corporation, partnership, etc.)
- Reason for applying (started new business, hired employees, opened bank account, etc.)
- Date the business started or was acquired
- Closing month of the accounting year
- Highest number of employees expected in the next 12 months
- Principal activity of the business (nature of products or services)
- Social Security Number or ITIN of the responsible party — the individual who controls, manages, or directs the entity and its assets
Federal Tax Obligations: An Overview for Texas Businesses
Obtaining an EIN activates your business's relationship with the IRS. Depending on entity type, activities, and workforce size, federal tax obligations typically fall into the categories below.
Federal Income Tax by Entity Type
| Entity Type | Federal Tax Treatment | Primary Return |
|---|---|---|
| Sole Proprietorship | Pass-through — reported on owner's personal return | Schedule C (Form 1040) |
| Single-Member LLC (default) | Disregarded entity — reported on owner's personal return | Schedule C (Form 1040) |
| Multi-Member LLC (default) | Partnership — pass-through to members | Form 1065 + K-1s |
| LLC electing S-Corp status | Pass-through — reported on shareholders' returns | Form 1120-S + K-1s |
| C Corporation | Entity-level tax at corporate rates | Form 1120 |
| S Corporation | Pass-through — reported on shareholders' returns | Form 1120-S + K-1s |
Federal Employment Taxes
Texas businesses that employ W-2 workers are generally responsible for several federal employment tax obligations regardless of entity structure:
- Federal Income Tax Withholding: Employers withhold federal income tax from employee wages based on each employee's Form W-4 and IRS withholding tables (IRS Publication 15-T).
- FICA Taxes (Social Security & Medicare): Both the employer and employee generally each pay 6.2% for Social Security (on wages up to the annual wage base) and 1.45% for Medicare. Employers with annual payroll tax liability under $50,000 typically deposit monthly; those above $50,000 deposit semi-weekly. Reported on Form 941 (quarterly) or Form 944 (annually, for qualifying small employers).
- Federal Unemployment Tax (FUTA): Employers pay 6.0% on the first $7,000 of each employee's wages annually. Texas employers who pay state unemployment taxes (SUTA) on time generally receive a credit of up to 5.4%, reducing the effective FUTA rate to 0.6%. Reported annually on Form 940.
Self-Employment Tax
Sole proprietors, general partners, and active LLC members taxed as partnerships generally pay self-employment (SE) tax in place of FICA. The SE tax rate is 15.3% on net self-employment income up to the Social Security wage base, and 2.9% above that threshold. An additional 0.9% Medicare surtax applies to SE income over $200,000 for single filers ($250,000 for married filing jointly). Reported on Schedule SE with Form 1040.
Estimated Tax Payments
Business owners who expect to owe $1,000 or more in federal tax after withholding and credits are generally required to make quarterly estimated tax payments using Form 1040-ES. The four standard payment due dates are April 15, June 15, September 15, and January 15 of the following year. Underpayment may result in an IRS penalty — verify current thresholds and dates at irs.gov.
Federal tax obligations begin the moment your business is active — not when you file your first return. Understanding your filing schedule early helps avoid penalties.
EIN vs. Texas Tax ID Number — Understanding the Difference
The federal EIN and the Texas Taxpayer Number are separate identifiers used by separate government agencies. Federal and Texas state tax systems are independent — registering with one does not satisfy the other.
| Tax Obligation | Federal (IRS) | Texas State (Comptroller) |
|---|---|---|
| Business income tax | Yes — varies by entity type | No personal or corporate income tax in Texas |
| Employment taxes | Yes — FICA, FUTA, withholding | Texas Workforce Commission (SUTA/UI) |
| Sales tax on taxable goods/services | No federal sales tax | Yes — Texas Sales and Use Tax (6.25% + local) |
| Franchise / margin tax | No direct equivalent | Yes — Texas Franchise Tax (most entities) |
| Excise taxes | Yes — on certain industries | Yes — industry-specific (motor fuel, tobacco, etc.) |
| Business identifier | EIN (9 digits — IRS) | Texas Taxpayer Number (11 digits — Comptroller) |
Most Texas businesses need both an EIN (federal) and a Texas Taxpayer Number (state). One does not substitute for the other.
Texas Comptroller Registration: Your Texas Taxpayer Number
Most Texas businesses with state tax obligations are generally required to register with the Texas Comptroller of Public Accounts. Registration is completed through the Comptroller's online portal — Texas eSystems (Webfile) — at comptroller.texas.gov. Upon registration, the Comptroller assigns an 11-digit Texas Taxpayer Number used for all state tax accounts.
A single Comptroller registration can activate multiple tax accounts at once. The Comptroller administers more than 60 types of taxes and fees in Texas. The most commonly applicable to new Texas businesses are addressed in the sections below.
Texas Sales Tax Permit Explained
What Is Subject to Texas Sales Tax?
Texas imposes a 6.25% state sales and use tax on the sale, lease, or rental of most tangible personal property and certain taxable services within Texas. Local taxing authorities — cities, counties, special purpose districts, and transit authorities — may add up to an additional 2%, bringing the maximum combined rate to 8.25%.
Texas law identifies specific categories of taxable services, including:
- Amusement and recreation services
- Cable television and telecommunications services
- Credit reporting services
- Data processing services
- Information services
- Insurance services
- Real property services (landscaping, janitorial, building maintenance)
- Personal property repair, restoration, and maintenance
- Security services
Who Is Generally Required to Obtain a Texas Sales Tax Permit?
Businesses that sell taxable goods or services in Texas are generally required to obtain a Texas Sales and Use Tax Permit from the Comptroller. In some cases, even a small number of sales may trigger registration requirements under Texas Tax Code § 151.023. There is no minimum revenue threshold that automatically exempts a business from the permit requirement.
An out-of-state (remote) seller that has economic nexus in Texas — generally defined as more than $500,000 in total Texas sales in the preceding 12 calendar months — is also generally required to register, collect, and remit Texas sales tax, even without a physical Texas location. For a link to the relevant Texas Sales Tax for Service Businesses guide, see the Related Resources section below.
How to Obtain a Texas Sales Tax Permit
The Texas Sales Tax Permit is available at no charge through the Comptroller's online eSystems portal. There is no application fee. The process generally takes fewer than 20 minutes for most businesses:
- Visit comptroller.texas.gov and navigate to "Register a New Business."
- Create or log in to a Texas eSystems account.
- Complete the online tax registration application — provide your EIN, business legal name, entity type, principal Texas address, NAICS code, and anticipated first date of taxable sales.
- The Comptroller assigns your Texas Taxpayer Number and issues your Sales Tax Permit, typically within two to three business days of a complete application.
- Post your permit at each Texas business location — permits are location-specific, and each physical Texas location requires a separate permit.
Collecting and Remitting Texas Sales Tax
Once permitted, your business is responsible for collecting the correct rate of sales tax on each taxable transaction and remitting collected taxes to the Comptroller. The Comptroller assigns a filing frequency — monthly, quarterly, or annually — based on your anticipated and actual Texas tax liability. As a general guide:
| Estimated Annual Tax Liability | Typical Filing Frequency | General Due Date |
|---|---|---|
| Higher liability (typically above $1,500/year) | Monthly | 20th of the following month |
| Moderate liability (typically $500–$1,499/year) | Quarterly | 20th of the month after the quarter ends |
| Lower liability (typically under $500/year) | Annually | January 20th |
A Texas Sales Tax Permit is free to obtain, location-specific, and required before making the first taxable sale — not after reaching a revenue threshold.
Texas Franchise Tax Overview
What Is the Texas Franchise Tax?
The Texas Franchise Tax is a privilege tax imposed on most entities chartered or organized in Texas — or doing business in Texas — for the privilege of operating in the state. It is sometimes called the Texas "margin tax" because it is calculated on a measure of taxable margin rather than net profit.
Who Is Subject to Texas Franchise Tax?
Most Texas business entities are subject to franchise tax reporting requirements, including corporations, LLCs and PLLCs, limited partnerships, LLPs, business trusts, real estate investment trusts, professional associations, and foreign entities doing business in Texas.
The following entities are generally not subject to the Texas Franchise Tax:
- Sole proprietorships (operating as an individual, not through a formal legal entity)
- General partnerships in which all partners are natural persons
- Entities exempt under Chapter 171 of the Texas Tax Code (certain nonprofits, passive entities, and others)
- Entities with annualized total revenues at or below the current No Tax Due threshold — verify the current threshold directly at comptroller.texas.gov, as it is subject to legislative adjustment
How Is Franchise Tax Calculated?
The franchise tax is calculated on a business's taxable margin. An entity selects the calculation method that produces the lowest result among the following options:
- Total revenue minus cost of goods sold (COGS)
- Total revenue minus compensation paid to employees
- 70% of total revenue
- Total revenue minus $1 million (available for entities with total revenue under the applicable threshold)
Texas Franchise Tax Rates by Business Activity
The applicable tax rate depends on the entity's primary business activity:
| Business Activity | Tax Rate on Taxable Margin |
|---|---|
| Retail or wholesale trade (as primary activity) | 0.375% |
| All other taxable entities | 0.75% |
| Entities at or below the No Tax Due threshold | $0 owed (report still required) |
Franchise Tax Filing Deadlines
Texas Franchise Tax reports are generally due annually on May 15 for most entities, covering the prior calendar year. New entities formed during a calendar year typically file their first report the following May 15. Extensions of up to 90 days are generally available but are required to be requested before the May 15 deadline — an extension provides additional time to file but does not extend the time to pay any tax owed. Always verify current deadlines at comptroller.texas.gov.
Texas Franchise Tax applies to most formal business entities — including LLCs with no revenue — and requires an annual filing regardless of whether any tax is owed.
Other Texas-Specific Tax Registrations
Depending on industry, location, and business activities, additional Texas tax registrations or permits may apply. The Texas Comptroller administers most of these.
Texas Unemployment Insurance (UI) Tax — Texas Workforce Commission
Businesses that pay wages to employees in Texas are generally subject to the Texas Unemployment Insurance (UI) tax, administered by the Texas Workforce Commission (TWC). Texas UI tax funds unemployment benefits for eligible former employees. Employers register with the TWC and pay the applicable UI tax rate on each employee's taxable wages up to the annual taxable wage base — verify the current wage base at twc.texas.gov, as it is updated periodically.
New employer UI tax rates vary by industry classification. After approximately two to three years, employers are assigned an experience-based rate calculated from their claims history. Employers report and pay UI taxes quarterly through the TWC Unemployment Tax Services online portal.
Texas Motor Fuels Tax
Businesses involved in the import, export, blending, distribution, or sale of motor fuels in Texas are generally required to register with the Comptroller for a motor fuel tax license or permit. Texas imposes fuel taxes at rates that vary by fuel type. Fuel tax credits and exemptions may be available for agricultural use, off-road equipment, and certain other qualifying uses — verify current rates and exemptions at comptroller.texas.gov.
Texas Mixed Beverage Taxes
Businesses licensed by the Texas Alcoholic Beverage Commission (TABC) to sell alcoholic beverages for on-premises consumption are generally subject to the Texas Mixed Beverage Gross Receipts Tax and the Mixed Beverage Sales Tax, both reported to the Comptroller. TABC licensing is a separate requirement from Comptroller tax registration. Consult current TABC and Comptroller guidance for applicable rates and procedures.
Hotel Occupancy Tax
Texas businesses that provide short-term lodging — including hotels, motels, bed and breakfasts, and short-term rental properties — are generally required to collect and remit the Texas Hotel Occupancy Tax. Local municipalities may also impose additional hotel occupancy taxes. Registration with the Comptroller is typically required before collecting this tax. Verify current state and local rates before beginning operations.
Texas Cigarette and Tobacco Products Tax
Manufacturers, distributors, wholesalers, and retailers of cigarettes, cigars, and other tobacco products in Texas are generally required to obtain a Texas Cigarette and Tobacco Products Permit from the Comptroller. Tax rates vary by product type. Verify current requirements and rates directly with the Comptroller before beginning tobacco-related sales.
Texas Insurance Premium Tax
Insurance companies and certain self-insurance entities doing business in Texas are subject to the Texas Insurance Premium Tax, administered jointly by the Texas Department of Insurance (TDI) and the Comptroller. This is a highly specialized area — entities in the insurance industry should consult qualified legal and tax counsel regarding their specific obligations.
Step-by-Step: Getting Your Texas Business Tax-Registered
For most new Texas businesses, tax registration follows a logical sequence. The steps below reflect a typical path for a new LLC or corporation — the specific steps applicable to any individual business will depend on its entity type, activities, and location.
Form Your Legal Entity with the Texas Secretary of State
File your Certificate of Formation (for LLCs) or Articles of Incorporation (for corporations) with the Texas Secretary of State and pay the applicable filing fee. Obtain your SOS-stamped formation document — you will need the entity's legal name exactly as registered for all subsequent registrations. If you plan to operate under a trade name, see our Texas DBA (Assumed Name) guide for filing requirements.
Apply for Your Federal EIN with the IRS
Apply online at irs.gov using the IRS EIN Assistant (free, available Mon–Fri 7 AM–10 PM ET). Have your entity's legal name, formation date, principal Texas address, and responsible party's SSN or ITIN ready. Your EIN is issued immediately upon completing the online application. Save or print the confirmation page — the IRS does not automatically mail a physical EIN letter, though one typically arrives by mail within a few weeks.
Register with the Texas Comptroller
Log in to the Texas eSystems portal at comptroller.texas.gov and complete the Texas Online Tax Registration. Provide your EIN, entity information, and the taxes for which you are registering (sales tax, franchise tax, etc.). Receive your Texas Taxpayer Number upon successful registration. For entity structure considerations that affect your Texas tax obligations, see our guide to choosing a Texas business structure.
Register with the Texas Workforce Commission (If Hiring Employees)
If you plan to hire employees, register as a Texas employer with the TWC at twc.texas.gov before paying wages. The TWC will assign a UI tax account number and an initial UI tax rate. For a broader overview of employer obligations, consult a qualified employment law or HR professional.
Obtain Industry-Specific Permits and Licenses
Based on your business activities, obtain any additional Texas Comptroller permits (motor fuel, mixed beverage, tobacco, hotel occupancy) and any applicable TABC, TDI, TCEQ, or other state agency licenses. Local city and county business licenses or permits may also be required — check with your specific municipality.
Open a Business Bank Account
Most Texas banks require your EIN, entity formation documents, and operating agreement (for LLCs) to open a business checking account. Having tax registrations in place before meeting with your bank will generally expedite this process.
Common EIN Mistakes to Avoid
The EIN application process is straightforward, but several common errors can create downstream problems with the IRS, Texas agencies, and financial institutions. The following mistakes appear frequently — and are entirely avoidable.
Applying for Multiple EINs for the Same Entity
Each legal entity needs only one EIN. Applying multiple times — for example, because you lost your original EIN — results in duplicate numbers that can create IRS filing complications. If an EIN is lost, it can be retrieved by calling the IRS Business & Specialty Tax Line at (800) 829-4933. The IRS can look up the EIN based on the entity's legal name and other identifying information.
Using a Personal SSN Instead of the Business EIN
Once a business has an EIN, using a personal Social Security Number on business tax documents, vendor forms, and 1099s is both unnecessary and risky. It exposes the owner's personal SSN to third parties and can complicate tax recordkeeping. Always use the business EIN for business-related filings and transactions.
Listing the Wrong Responsible Party
The IRS requires that the responsible party listed on an EIN application be an individual with actual control over the entity — not a corporate entity or nominee. Listing an incorrect responsible party can delay processing and may create issues if the IRS needs to contact the business about its tax account.
Paying a Third Party for a Free IRS Service
The IRS EIN application is entirely free. Many businesses pay $50–$300+ to third-party services for a service that takes minutes at no cost on irs.gov. If professional assistance is genuinely needed (e.g., complex entity structures, foreign ownership), engage a licensed CPA or attorney — not an online filing service with no professional oversight.
Assuming an EIN Registers the Business for Texas Taxes
An EIN is a federal identifier only. Obtaining one does not notify the Texas Comptroller, activate a sales tax permit, or satisfy any state filing requirement. Texas tax registration is a completely separate process — and skipping it can result in assessments, penalties, and interest if taxable sales were made without a permit.
Not Updating the IRS When Responsible Party Information Changes
If the responsible party associated with your EIN changes — for example, after a change in ownership or management — the IRS is required to be notified within 60 days using Form 8822-B (Change of Address or Responsible Party — Business). Failing to update this information can result in IRS correspondence going to the wrong person.
An EIN application is free, immediate, and straightforward — but small errors at the application stage can create lasting complications. Take 15 minutes to get it right the first time.
Frequently Asked Questions
What is an EIN in Texas, and do I need one?
An EIN (Employer Identification Number) is a free, nine-digit federal tax ID issued by the IRS to identify a business for tax purposes. Many Texas businesses — including most LLCs, corporations, and any business with employees — will need one. Even when the IRS does not strictly require an EIN, banks and the Texas Comptroller commonly require it for business banking and sales tax registration.
Do I need an EIN for an LLC in Texas?
Multi-member LLCs are required by the IRS to obtain an EIN. Single-member LLCs with no employees are not required by the IRS, but in practice most Texas banks and the Texas Comptroller require an EIN for business accounts and sales tax registration. For most Texas LLC owners, obtaining an EIN is advisable regardless of IRS requirements.
How do I get a Texas tax ID number?
There are two distinct tax IDs for Texas businesses. A federal EIN (from the IRS) is obtained free at irs.gov. A Texas Taxpayer Number (from the Texas Comptroller) is obtained by registering at comptroller.texas.gov. Most Texas businesses will need both — they serve different purposes and are issued by different agencies.
How long does it take to get an EIN in Texas?
Applying online through the IRS EIN Assistant typically results in receiving an EIN immediately during the session. By fax, approximately four business days. By mail, approximately four to five weeks. The IRS charges no fee for any method.
Does getting an EIN mean I am registered for Texas taxes?
No. An EIN satisfies federal identification requirements only. Registering with the Texas Comptroller of Public Accounts is a separate process completed at comptroller.texas.gov. Obtaining an EIN does not activate a Texas Sales Tax Permit, franchise tax account, or any other state tax registration.
Can I use my Social Security Number instead of an EIN for my Texas business?
A sole proprietor with no employees is generally not required by the IRS to obtain an EIN and may use their SSN for federal tax purposes. However, most Texas banks require an EIN to open a business account, and the Texas Comptroller generally requires one for sales tax registration. Using an EIN on business documents also reduces unnecessary exposure of a personal SSN.
Does my Texas LLC need to pay franchise tax if it has no revenue?
A Texas LLC is generally subject to the franchise tax reporting requirement regardless of revenue level. If annualized total revenue falls at or below the current No Tax Due threshold, no tax is owed — but a franchise tax report typically must still be filed. A newly formed LLC may owe no tax in its first year depending on formation date and revenue period. Verify current thresholds and requirements at comptroller.texas.gov or consult a qualified tax advisor.
If I sell only services, do I need a Texas Sales Tax Permit?
It depends on whether the services are taxable under the Texas Tax Code. Many professional services — legal, accounting, medical, management consulting — are generally not taxable. However, a significant number of service categories are taxable in Texas (data processing, real property services, telecommunications, security services, and others). Businesses with any uncertainty about their specific services should review the Comptroller's guidance or consult a qualified tax professional before assuming no permit is needed.
Can one EIN cover multiple businesses?
Generally, each separate legal entity requires its own EIN. A sole proprietor with one business typically uses one EIN. If that individual forms a second distinct legal entity — a separate LLC, for example — the new entity generally requires its own EIN. A single LLC operating multiple brands under one legal entity typically uses one EIN for the LLC, even if the LLC has multiple DBAs on file.
What are the consequences of not registering for Texas sales tax when required?
Operating without a required Texas Sales Tax Permit and failing to collect and remit sales tax can result in the Comptroller assessing back taxes, interest, and civil penalties. In cases of willful or fraudulent failure to pay, the Texas Tax Code provides for criminal liability. The Comptroller may also deny renewal of other state permits or licenses until outstanding tax liabilities are resolved. Early voluntary registration and disclosure is generally preferable to waiting for an audit.