Texas Form C-1, the Status Report, is the registration form every new Texas employer files with the Texas Workforce Commission to determine liability for state unemployment tax under Texas Labor Code Chapter 201. The form opens an unemployment tax account, assigns a TWC account number, and sets the wage base and tax rate that follow your business for years.
Filing late or wrong is not a small problem. The TWC processes more than 60,000 new employer status reports each year, and roughly 1 in 5 are flagged for follow-up because of NAICS, ownership, or “date wages first paid” errors, which can delay your account number, freeze your first C-3 Quarterly Report, and trigger penalty and interest under Texas Labor Code §213.021.
Here is what you will learn in this guide:
- 📋 Exactly which lines on Form C-1 trip up filers and how to answer each one.
- 🧾 Three full filled-out scenarios using named filers and real numbers.
- ⏰ The 10-day liability deadline and the penalties for missing it.
- 💻 How to file online through Unemployment Tax Registration, by mail, and by fax.
- ⚖️ The statutes, rules, and related forms (C-1FR, C-3, C-5, C-20) that connect to your filing.
What Form C-1 Is and Who Must File It
Form C-1, Status Report (revision date printed in the lower-left corner — confirm you have the most recent version on the TWC forms page) is the registration document the Texas Workforce Commission uses to decide if your business is a “liable employer” under Texas Labor Code §201.021. Once TWC determines you are liable, you receive a nine-digit TWC tax account number and a starting tax rate of 2.7% (the new-employer rate) on the first $9,000 of each worker’s wages.
You must file Form C-1 if any of the following apply. You paid $1,500 or more in gross wages in a calendar quarter. You had at least one employee for some part of a day in 20 different weeks during a calendar year. You bought all or part of an existing Texas business (predecessor/successor liability under §204.083). You are already liable for Federal Unemployment Tax (FUTA) and have Texas employees. You employ domestic workers and paid $1,000 or more in a quarter, or you are a 501(c)(3) nonprofit with four or more employees in 20 weeks.
Agricultural and ranch employers use Form C-1FR instead, but every other employer — sole proprietors, LLCs, corporations, partnerships, nonprofits, and out-of-state employers with Texas workers — uses Form C-1. The deadline is strict: file within 10 days after you first meet a liability test, per 40 TAC §815.107. Missing that window does not erase liability; TWC will back-date your account to the actual liability date and charge interest on every unpaid quarter.
Before You Start: Documents and Information You Need
Open Form C-1 only after you have gathered everything below. Stopping mid-form to hunt for an EIN or NAICS code is the single most common reason filers enter wrong data and trigger a TWC follow-up letter.
- Federal Employer Identification Number (FEIN) from the IRS EIN application. Without it, TWC cannot cross-match your account to IRS records, and your file will sit in pending status.
- Texas Secretary of State file number for LLCs, corporations, and LPs from SOSDirect. Sole proprietors skip this, but LLCs that leave it blank are routinely rejected.
- NAICS code matching your primary business activity, looked up at the Census NAICS search. Wrong NAICS pushes you into the wrong industry tax rate group.
- Date wages were first paid in Texas. This is the trigger date for liability and must match what you eventually report on Form C-3.
- Owner, partner, or corporate officer information: legal names, SSNs, titles, home addresses, and ownership percentages. TWC requires SSNs under §204.008 to enforce personal liability for unpaid taxes.
- Predecessor account number and FEIN if you bought, merged with, or partially acquired another Texas employer. Missing this forfeits the predecessor’s experience rating and can raise your tax rate.
- First-quarter payroll estimate so you can answer the wage projection lines accurately.
- Texas business address and mailing address, including any “doing business as” (DBA) names registered with the county clerk or SOS.
- Bank routing and account numbers if you plan to set up TEXNET electronic tax payments.
- NAICS-aligned description of activities in plain English, because TWC reviewers compare your description to the code you picked.
Where to Get the Form and How to Access It
The official PDF lives on the TWC Forms page, where it is listed as “C-1 Status Report.” Always download a fresh copy each time you file because TWC quietly updates revision dates, and using a stale version with retired field labels is grounds for rejection.
Most employers, however, never touch the PDF. TWC strongly prefers electronic registration through Unemployment Tax Registration (UTR), a free portal that walks you through the same C-1 questions in a guided interview format and assigns your account number in minutes instead of weeks. UTR also stores your data so you can return to update officers, addresses, or NAICS codes without filing a new paper form.
If you must file on paper — for example, because you have a complex multi-entity acquisition or your authorized signer is overseas — print the form, complete it in black ink (or fillable PDF), sign it, and mail or fax it to the address on page 2. You can also call TWC’s Tax Department at 512-463-2731 to request a paper packet mailed to your business. Tax preparers and CPAs filing for multiple clients should use the TWC Tax Practitioner tools, which allow batch registration and power-of-attorney filings under Form C-42.
Step-by-Step: How to Fill Out Form C-1 Line by Line
Form C-1 is two pages with roughly 30 numbered items grouped into employer identification, ownership, business activity, liability tests, predecessor information, and signature. Work top to bottom; do not skip ahead, because later answers depend on earlier ones.
Item 1: Federal Employer Identification Number (FEIN)
This field asks for the nine-digit number the IRS issued when you applied for an EIN. Enter it in the format XX-XXXXXXX, with the dash, exactly as it appears on your IRS CP 575 notice. For example, Maria Lopez, owner of Lopez Bakery LLC, writes 86-1234567. If you applied online and have only the confirmation email, that number is final and usable — you do not need to wait for the paper letter. The most common mistake is transposing two digits, which causes TWC’s automated IRS match to fail and freezes your account in “unverified” status for 4–6 weeks. A frequent misconception is that sole proprietors can use their SSN here; they cannot once they have any employees, because IRS rules require an EIN the moment you hire your first W-2 worker.
Item 2: Legal Name of Employer
This is the exact legal name on file with the IRS and, for entities, the Texas Secretary of State. Write it in ALL CAPS, including suffixes like LLC, INC, or LP. For example, Carlos Mendez’s bakery enters LOPEZ BAKERY LLC, not Lopez Bakery or Lopez’s Bakery. The nuance: sole proprietors enter their personal legal name (e.g., MARIA G LOPEZ) on this line, not the DBA. Filers who enter a DBA here trigger a name-mismatch with IRS records, which delays account issuance. The misconception worth correcting: this is not where your “brand name” goes — that belongs on Item 4.
Item 3: Mailing Address
Enter the address where you want TWC to mail tax notices, rate letters, and the Form C-3 Quarterly Report. Use one line per address element: street or P.O. Box, city, state, ZIP+4. Lopez Bakery LLC enters PO BOX 482, AUSTIN, TX 78767-0482. The edge case: if you use a CPA’s address as your mail-to, you must also file Form C-42 Power of Attorney so the CPA can legally receive notices. The common mistake is listing only a P.O. Box and leaving the physical address blank on Item 4 — TWC needs both for audit and field-visit purposes. The misconception: a P.O. Box alone does not satisfy the “place of business” requirement under 40 TAC §815.106.
Item 4: Physical Location of Business in Texas
This field asks for the street address where work actually happens — the storefront, office, warehouse, or job site. Enter the full street address, even if it is the same as the mailing address (write SAME AS ITEM 3 only if instructed). Aisha Patel, who runs a home-based consulting LLC, enters 1450 PECAN GROVE DR, HOUSTON, TX 77019. Edge case: construction and mobile-service employers use the address where business records are kept. A common mistake is entering a virtual-office or coworking address that you do not actually occupy, which fails TWC’s address verification and can be flagged as a fraudulent registration under §214.001. The misconception: home-based businesses can use a home address, and TWC will not publicly disclose it.
Item 5: Trade Name or DBA
Enter the “doing business as” name registered with your county clerk or, for entities, with the Texas SOS Assumed Name database. Marcus Greene’s LLC, legally GREENE HOLDINGS LLC, enters AUSTIN AUTO DETAIL on this line. If you have no DBA, leave it blank — never write “N/A” or “None.” Edge case: multiple DBAs go on a separate sheet labeled “Attachment to Item 5.” The mistake here is using a DBA that has not been registered, which TWC cross-checks against the SOS database. The misconception: a DBA does not create a separate tax account; one C-1 covers all DBAs of the same legal entity.
Item 6: Telephone Number
Provide a daytime business phone where TWC can reach a person who can answer payroll questions. Format as (512) 555-0144. Janet Kim’s nonprofit enters (210) 555-0199. The edge case: out-of-state owners should list a Texas-based number if possible, because TWC examiners often call during Central Time business hours. The mistake is listing a personal cell that goes to voicemail; TWC’s three-attempt rule means unanswered calls trigger written follow-up that adds 2–3 weeks to processing. The misconception: this number is not published publicly; it is only used internally by TWC tax staff.
Item 7: Email Address
Enter a monitored business email; TWC sends rate-notice PDFs and UTR confirmations here. Lopez Bakery LLC enters payroll@lopezbakery.com. Edge case: shared inboxes (e.g., info@) are fine, but personal emails like gmail.com addresses get flagged for verification. The common mistake is using a typo’d domain — TWC does not bounce-check, so a wrong address means missed rate notices and possible underpayment penalties. The misconception: TWC will not send unsolicited spam; this email is used only for tax-account communications.
Item 8: Type of Organization
Check exactly one box: Sole Proprietor, Partnership, Corporation, LLC, LLP, Estate, Trust, Receivership, Association, Joint Venture, Governmental Entity, or Other. Carlos Mendez, filing for his single-member LLC, checks LLC, not Sole Proprietor, even though the IRS treats him as a disregarded entity. Edge case: a single-member LLC with an EIN files as LLC here regardless of federal tax classification. The mistake is checking “Sole Proprietor” when you have actually formed an LLC, which creates an entity-mismatch with SOS records and rejects the form. The misconception: TWC’s classification is for unemployment tax only and does not change your federal income tax election.
Item 9: Date Texas Business Began
Enter the date you first conducted business activity in Texas, in MM/DD/YYYY format. Aisha Patel writes 03/14/2026 because that is the day her LLC was formed and she opened a bank account. Edge case: businesses that existed elsewhere and expanded into Texas use the date Texas operations began, not the original founding date. The mistake is using the date of incorporation if operations actually started later — this affects the liability test calculation in Items 12–14. The misconception: this is not the same as Item 10 (date wages were first paid); a business can exist for months before hiring.
Item 10: Date Wages Were First Paid in Texas
This is the single most consequential field on Form C-1. Enter the MM/DD/YYYY date you first paid wages — including bonuses, commissions, and noncash compensation valued at fair market value — to any worker performing services in Texas. Lopez Bakery LLC enters 04/01/2026, the date of its first payroll run. Edge case: a draw or distribution to an LLC member is not wages; only W-2 employee compensation counts. The mistake of guessing or estimating triggers an audit, because TWC reconciles this date against your first C-3 quarterly wage report. The misconception: paying a 1099 contractor does not start the clock; only common-law employees under the ABC test in §201.041 count.
Item 11: NAICS Code and Description
Look up your six-digit NAICS code for primary business activity and write both the code and a short plain-English description. Marcus Greene enters 811192 — CAR WASHES. Edge case: businesses with multiple lines of activity choose the one generating the most revenue. The mistake is picking a “close enough” code from memory; the wrong NAICS lands you in the wrong industry rate group and can change your tax rate by 0.5–2% after your first experience-rating year. The misconception: NAICS is not the same as your SIC code or your IRS principal business code, although they often align.
Item 12: Did You Pay $1,500 or More in Gross Wages in a Calendar Quarter?
Check Yes or No and, if Yes, enter the MM/DD/YYYY date the threshold was crossed. Lopez Bakery LLC checks Yes and writes 06/30/2026. Edge case: the $1,500 is gross — pre-tax, pre-deduction — and aggregates all employees. The mistake is only counting net pay or excluding bonuses, which underreports the threshold and creates back-tax exposure. The misconception: the test is per quarter, not annual; one $1,500 quarter triggers full-year liability.
Item 13: Did You Have at Least One Employee in 20 Different Weeks?
Check Yes or No. If Yes, enter the date the 20th week ended. Janet Kim’s nonprofit checks Yes 11/15/2026 because that was the Sunday ending her 20th covered week. Edge case: the 20 weeks do not need to be consecutive, and any part of a day worked counts as a week. The mistake is counting only full-time weeks; part-time and seasonal employees count too. The misconception: independent contractors do not count, but misclassified workers will be reclassified by TWC under §201.041.
Item 14: Are You Liable for FUTA?
Check Yes if you must file IRS Form 940 for Federal Unemployment Tax. Carlos Mendez checks Yes because he paid more than $1,500 in a quarter to non-farm employees. Edge case: FUTA liability automatically creates Texas SUTA liability under §201.027. The mistake is checking No when you actually owe FUTA; TWC cross-checks IRS data and will retroactively assess Texas tax. The misconception: paying FUTA does not satisfy SUTA; the two are separate, though FUTA grants a 5.4% credit for timely SUTA payments.
Item 15: Predecessor Information
If you acquired all or part of an existing Texas employer, enter the predecessor’s TWC account number, FEIN, legal name, and the date and percentage of acquisition. Aisha Patel, who bought 100% of an existing consulting firm on 02/01/2026, enters TWC account 99-123456-7, FEIN 75-9876543, ACME CONSULTING LLC, 02/01/2026, 100%. Edge case: partial acquisitions require a Form C-81 Joint Application for Partial Transfer. The mistake is leaving this blank to “start fresh” with the new-employer rate — this is illegal under §204.083 and called SUTA dumping, with penalties up to $5,000 plus the highest tax rate. The misconception: you cannot opt out of inheriting the predecessor’s experience rating, good or bad.
Item 16–22: Owner, Partner, and Officer Information
List every owner with 10% or more ownership, every general partner, and every corporate officer. For each, enter legal name, title, SSN, home address, phone, and ownership percentage. Greene Holdings LLC lists Marcus Greene, Managing Member, SSN 123-45-6789, 100%. Edge case: trusts list the trustee; estates list the executor. The mistake is omitting a minority owner above 10%, which violates §204.008 disclosure rules and can be treated as a material misstatement. The misconception: SSN disclosure is mandatory under federal 42 USC §405(c)(2)(C) for tax administration and is not optional.
Item 23: Number of Employees
Enter the current number of full- and part-time Texas employees. Lopez Bakery LLC enters 4. Edge case: count anyone on payroll, even if on unpaid leave. The mistake is excluding part-time staff; TWC counts every W-2 worker. The misconception: this is a snapshot, not an annual estimate.
Item 24: Type of Business Activity (Description)
Write 1–3 sentences describing what your business does, in plain English. Marcus Greene writes Full-service automatic and hand car wash with retail detail products. Edge case: multi-activity businesses describe each line and identify the primary one. The mistake is writing one vague word like “services,” which forces a TWC reviewer to call you. The misconception: this description must match — not contradict — the NAICS code in Item 11.
Item 25: Do You Have Employees in Other States?
Check Yes or No; if Yes, list the states. Janet Kim’s nonprofit checks Yes — California, New York. Edge case: remote workers living out of state but performing all work for Texas operations may still be Texas-covered under the localization-of-work test in §201.043. The mistake is assuming remote workers belong to their home state automatically. The misconception: there are tie-breaker rules, not a single answer, when work crosses state lines.
Item 26: Domestic, Agricultural, or 501(c)(3) Status
Check the box(es) that apply. Janet Kim checks 501(c)(3) and provides her IRS determination letter date. Edge case: domestic employers (household help) have a higher $1,000 quarterly threshold under §201.027. The mistake is missing the Form C-6A nonprofit reimbursement election, which can save eligible 501(c)(3)s significant tax. The misconception: nonprofits are not automatically exempt from SUTA; only churches and certain religious orders are.
Item 27: Group Account Election
Indicate if you want to join a group account under Form C-20. Most filers check No. Edge case: related corporations under common ownership can pool experience ratings. The mistake is electing this without modeling the rate impact. The misconception: this election is not reversible for at least two calendar years.
Item 28: TEXNET Electronic Payment Setup
Check Yes to enroll in TEXNET and provide bank routing and account numbers. Lopez Bakery checks Yes and provides routing 111000025, account 0123456789. Edge case: employers with $250,000+ annual liability are required to use TEXNET. The mistake is leaving banking blank if you owe over the threshold, which triggers §213.023 penalties. The misconception: TEXNET is not the same as ACH debit through UTR; they are parallel options.
Item 29: Authorized Signature
Sign and date in blue or black ink (wet signature) or apply a verified e-signature in UTR. Maria Lopez signs as Member, dates 04/15/2026. Edge case: third-party signers must attach Form C-42 Power of Attorney. The mistake is signing as “Owner” when you are technically a Member or President; titles must match SOS records. The misconception: an unsigned form is not “almost done” — it is legally void and not filed.
Item 30: Preparer Information (If Different from Signer)
If a CPA, attorney, or payroll service prepared the form, enter their name, firm, phone, and PTIN or EIN. Greene Holdings’s CPA enters Linda Park, Park CPA PLLC, (512) 555-0177, PTIN P01234567. Edge case: in-house bookkeepers leave this blank. The mistake is listing a preparer without filing a C-42, which prevents TWC from speaking with that preparer. The misconception: a paid preparer is not automatically your tax representative without a separate POA.
Three Filled-Out Examples Using Real Scenarios
Scenario 1: Maria Lopez, Sole-Member LLC Hiring Her First Employee
| Form Section | What Maria Enters |
|---|---|
| Item 1 FEIN | 86-1234567 |
| Item 2 Legal Name | LOPEZ BAKERY LLC |
| Item 4 Physical Location | 2301 E 7TH ST, AUSTIN, TX 78702 |
| Item 8 Type of Organization | LLC |
| Item 10 Date Wages First Paid | 04/01/2026 |
| Item 11 NAICS | 311811 — RETAIL BAKERY |
| Item 12 $1,500 Quarter | Yes — 06/30/2026 |
| Item 15 Predecessor | None |
| Item 16 Owner | MARIA G LOPEZ, Member, 100%, SSN 555-12-3456 |
| Item 29 Signature | Maria G Lopez, Member, 04/15/2026 |
Scenario 2: Marcus Greene, LLC That Acquired an Existing Car Wash
| Form Section | What Marcus Enters |
|---|---|
| Item 1 FEIN | 47-7654321 |
| Item 2 Legal Name | GREENE HOLDINGS LLC |
| Item 5 Trade Name | AUSTIN AUTO DETAIL |
| Item 8 Type of Organization | LLC |
| Item 10 Date Wages First Paid | 01/15/2026 |
| Item 11 NAICS | 811192 — CAR WASHES |
| Item 14 FUTA Liable | Yes |
| Item 15 Predecessor | TWC 12-345678-9, FEIN 74-1112222, SHINY WASH LLC, 01/15/2026, 100% |
| Item 16 Owner | MARCUS J GREENE, Managing Member, 100%, SSN 222-33-4444 |
| Item 29 Signature | Marcus J Greene, Managing Member, 01/25/2026 |
Scenario 3: Janet Kim, 501(c)(3) Nonprofit With Multi-State Workers
| Form Section | What Janet Enters |
|---|---|
| Item 1 FEIN | 82-9988776 |
| Item 2 Legal Name | BRIGHT FUTURES FOUNDATION |
| Item 4 Physical Location | 900 CONGRESS AVE STE 400, AUSTIN, TX 78701 |
| Item 8 Type of Organization | Corporation (Nonprofit) |
| Item 11 NAICS | 813211 — GRANTMAKING FOUNDATIONS |
| Item 13 20-Week Test | Yes — 11/15/2026 |
| Item 25 Other States | Yes — California, New York |
| Item 26 501(c)(3) | Checked, IRS letter dated 06/01/2025 |
| Item 27 Group Account | No |
| Item 29 Signature | Janet S Kim, Executive Director, 11/20/2026 |
How to File the Completed Form
You have three filing channels, and each has a different processing speed and proof-of-filing trail.
The fastest channel is online through Unemployment Tax Registration (UTR). There is no fee. You log in, complete the guided interview, e-sign, and download the confirmation PDF — keep that PDF as proof of filing. Account numbers issue in 1–3 business days. Payments later flow through TEXNET or ACH debit.
By mail, send the signed paper Form C-1 to Texas Workforce Commission, Tax Department, P.O. Box 149037, Austin, TX 78714-9037. There is no fee. Use USPS Certified Mail with Return Receipt as your proof — keep the green card and tracking number for at least four years under §205.001 recordkeeping rules. Processing time is typically 4–6 weeks.
By fax, send the signed form to 512-463-8185. Keep the fax confirmation page; it is your only proof of filing. Processing runs 2–4 weeks. There is no fax fee, but TWC may still call to verify the signature. CPAs filing in bulk should use the TWC Tax Practitioner batch tools, which require a master Form C-42 Power of Attorney on file before the first batch.
What Happens After You File
Within 1–6 weeks (depending on channel), TWC mails a Notice of Liability with your nine-digit tax account number, your assigned new-employer tax rate (currently 2.7%), and your first C-3 Quarterly Report due date. Read this notice carefully — the rate and effective date are appealable within 15 days under §213.022.
If TWC has questions, you will get a Status Determination Inquiry letter with a 14-day response window. Common questions involve NAICS verification, predecessor confirmation, and “date wages first paid” reconciliation. Ignoring this letter results in TWC making determinations based on available data — almost always against the employer.
Once your account is active, you must file a Form C-3 Wage Report every quarter (due last day of the month after each quarter) and pay the tax due, even if zero. After three full calendar years, TWC computes your experience rating under §204.041, which can drop your rate as low as 0.23% or raise it to 6.23%, depending on layoff history.
Mistakes to Avoid When Filling Out the Form
- Entering an SSN instead of an EIN in Item 1, which permanently blocks IRS cross-match and freezes your account.
- Picking the wrong NAICS code in Item 11, which lands you in the wrong industry rate group for years.
- Estimating “date wages first paid” in Item 10, which fails C-3 reconciliation and triggers audit.
- Leaving Item 15 (predecessor) blank after an acquisition, which is treated as SUTA dumping with up to $5,000 in penalties.
- Checking “Sole Proprietor” in Item 8 when you actually formed an LLC, causing an SOS mismatch rejection.
- Listing a P.O. Box in Item 4 (physical location), which fails address verification under 40 TAC §815.106.
- Omitting an owner with 10%+ ownership, which violates §204.008 disclosure.
- Misclassifying employees as 1099 contractors, which TWC reverses under the §201.041 ABC test.
- Forgetting to attach Form C-42 when a CPA signs, which voids the third-party signature.
- Filing more than 10 days after the liability date, which triggers interest and penalty under §213.021.
- Writing “N/A” instead of leaving optional fields blank, which TWC scanners flag as data-entry conflicts.
- Skipping the email field in Item 7, which delays delivery of your rate notice and first C-3 reminder.
Do’s and Don’ts
Do’s
- Do download a fresh PDF from the TWC Forms page every time, because revision dates change without notice.
- Do file through UTR online when possible — it is faster, free, and validates fields in real time.
- Do verify your NAICS code at the Census NAICS lookup before writing it down.
- Do keep a signed PDF or scanned copy in your records for at least four years under §205.001.
- Do call TWC at 512-463-2731 if any field is unclear; verbal guidance is free and binding only when in writing, but it prevents most rejections.
- Do file Form C-42 POA before letting a CPA or payroll service sign or call on your behalf.
Don’ts
- Don’t use white-out or cross-outs on the paper form; reprint and re-sign.
- Don’t sign before all fields are complete — an unsigned partial form is treated as void.
- Don’t guess at FEIN, SSN, or NAICS; one wrong digit means weeks of delay.
- Don’t wait past the 10-day liability deadline hoping TWC won’t notice — they will, through IRS data sharing.
- Don’t leave predecessor information blank after any acquisition, even partial.
- Don’t classify W-2 work as 1099 to dodge SUTA; reclassification under §201.041 is automatic.
Pros and Cons of Filing on Your Own vs. With Help
Pros of filing yourself
- No professional fees — UTR is free.
- Faster turnaround for simple sole-proprietor and single-member LLC filings.
- Direct understanding of your own NAICS, ownership, and wage data.
- You learn the system before your first C-3 Quarterly Report.
- Easier updates later because your UTR login is yours.
Cons of filing yourself
- High error rate on Items 10, 11, and 15 for first-time filers.
- No advice on predecessor/successor strategy under §204.083.
- No representation if TWC issues a Status Determination Inquiry.
- Risk of misclassifying workers and triggering retroactive liability.
- Time cost: 2–4 hours of research for a first-timer vs. 20 minutes for a CPA.
Form C-1 vs. Related Forms
| Form | What It Does |
|---|---|
| Form C-1 | Initial status report and registration for most employers under §201.021. |
| Form C-1FR | Status report for farm and ranch employers only. |
| Form C-3 | Quarterly wage and tax report filed every quarter after C-1. |
| Form C-5 | Adjustment report to correct prior C-3 filings. |
| Form C-20 | Election to join a group account for related employers. |
| Form C-42 | Power of Attorney for tax representatives. |
| Form C-81 | Joint application for partial predecessor/successor transfer. |
| Form C-6A | 501(c)(3) reimbursement election in lieu of contributions. |
FAQs
Is there a filing fee for Form C-1?
No. TWC does not charge a fee to register through paper, fax, or UTR online. The only costs are postage or your time.
How long do I have to file after I become liable?
Yes, the deadline matters: file within 10 days of the date you first meet a liability test under 40 TAC §815.107, or interest and penalty start accruing.
Can I file Form C-1 before I hire my first employee?
Yes. You may pre-register through UTR once you know your “date wages first paid,” but the account stays inactive until that date arrives.
Do I write my legal name or DBA in Item 2?
No to DBA. Item 2 is the legal name on file with the IRS and Texas SOS; the DBA goes on Item 5.
What if I have a P.O. Box but no street address?
No, a P.O. Box alone is not enough. Item 4 requires a physical Texas location for audit purposes; the P.O. Box may go in Item 3 instead.
Do single-member LLCs check “Sole Proprietor” in Item 8?
No. Single-member LLCs check LLC in Item 8 regardless of how the IRS classifies them for income tax.
Does paying a 1099 contractor trigger Form C-1 liability?
No, true independent contractors under the §201.041 ABC test do not count, but misclassified workers will be reclassified by TWC.
Is the Item 16 SSN disclosure mandatory?
Yes. Federal 42 USC §405(c)(2)(C) and Texas §204.008 require it for tax administration and personal liability enforcement.
Can I skip Item 15 if I want a “fresh” tax rate?
No. Hiding a predecessor relationship is SUTA dumping under §204.083 and carries up to $5,000 in penalties plus the maximum tax rate.
What is the new-employer tax rate after I file?
Yes, there is a starting rate: most new employers receive 2.7% on the first $9,000 of each worker’s wages until experience rating begins under §204.041.
Can a CPA sign Form C-1 for me?
Yes, but only if a Form C-42 Power of Attorney is on file with TWC before the C-1 is submitted.
Do nonprofits have to file Form C-1?
Yes. 501(c)(3)s with four or more employees in 20 weeks file Form C-1 and may elect reimbursement instead of contributions on Form C-6A.
How will I know my filing was accepted?
Yes, TWC sends a Notice of Liability with your nine-digit account number within 1–6 weeks; UTR filers also get an instant on-screen confirmation PDF.
Can I amend Form C-1 after filing?
Yes. Log into UTR to update officers, addresses, and NAICS; material changes like ownership require written notice to TWC Tax Department.
Related reading
- How to Fill Out Texas Form C-3 (w/Examples) + FAQs
- How to Fill Out Texas Form C-5 (w/Examples) + FAQs
- How to Fill Out Texas Form TWC C-9 (w/Examples) + FAQs
- How to Fill Out Texas TWC Form C-2A (w/Examples) + FAQs
- How to Fill Out Texas TWC Form C-6 (w/Examples) + FAQs
- How to Fill Out Texas TWC Joint Employer Application (w/Examples) + FAQs
- How to Fill Out California Form DE-9 (w/Examples) + FAQs