How to File a Texas LLC Annual Report and Franchise Tax

Texas does not require LLCs to file a traditional annual report. Instead, every LLC organized in the state or doing business here files two forms each year with the Texas Comptroller of Public Accounts: a Public Information Report and a Franchise Tax Report.1Comptroller of Public Accounts. Texas Franchise Tax Public Information Report and Ownership Information Report Both are due by May 15. Miss that date and the state can charge penalties, tack on interest, and eventually forfeit your LLC’s right to do business in Texas.2Comptroller of Public Accounts. Franchise Tax

The Two Filings That Replace an Annual Report

Most states use a short annual report to keep an LLC’s records current. Texas splits that job in two, and the filings go to the Comptroller rather than the Secretary of State.

The Public Information Report (Form 05-102) is the informational half. It lists the names and addresses of your LLC’s officers, directors, managers, or members, depending on how the company is structured.3Texas Secretary of State. Management and Ownership FAQs Every address has to be a physical street location, not a P.O. box. Once the Comptroller processes the report, it forwards the data to the Secretary of State, where anyone can look it up.1Comptroller of Public Accounts. Texas Franchise Tax Public Information Report and Ownership Information Report

The Franchise Tax Report is the financial half. Depending on revenue, your LLC may owe nothing or may need to run a calculation. Either way, the PIR is still required every year.

Do You Owe Franchise Tax

Whether you owe tax depends on annualized total revenue. For the 2026 report year, LLCs with $2,650,000 or less in annualized total revenue owe no franchise tax.4Comptroller of Public Accounts. Texas Franchise Tax Report Forms for 2026 There is no separate No Tax Due Report to submit. That form (05-163) was discontinued starting with the 2024 report year, so filing the PIR is enough on its own.5Comptroller of Public Accounts. No Tax Due Reporting for Report Year 2024 and Later

LLCs above the threshold pick a reporting method. EZ Computation is available to LLCs with total revenue of $20 million or less and applies a flat 0.331% rate to total revenue.2Comptroller of Public Accounts. Franchise Tax6Texas Comptroller of Public Accounts. Franchise Tax Overview7Texas Comptroller of Public Accounts. What is Franchise Tax? Any LLC can choose the Long Form to claim deductions.

Before you file, have your 11-digit Texas Taxpayer Number and your Webfile number (starts with “XT” followed by six digits) ready. Both appear on the franchise tax notice the Comptroller mails roughly six weeks before the deadline.8Texas Comptroller. Getting Started with Webfile

The May 15 Deadline and Your Extension Option

Both reports are due by May 15 each year.9State of Texas. Texas Tax Code TAX-171.202 – Annual Report When May 15 lands on a weekend or legal holiday, the deadline moves to the next business day.2Comptroller of Public Accounts. Franchise Tax

Newly formed LLCs get a break on the first go. The first report is not due until the year after the entity was legally organized, so an LLC formed anywhere in 2025 files its first report by May 15, 2026. The accounting period for that first report begins on the date the entity became subject to the tax.10Texas Comptroller of Public Accounts. Annual Report Instructions – Franchise Tax

Need more time? You can request an extension to November 15, but the extension only counts if you make a payment by May 15 equal to at least 90% of the tax that will be due on this year’s report, or 100% of the tax reported last year.11Texas Comptroller. Franchise Tax Extensions of Time to File If your payment falls short, the Comptroller assesses penalties and interest on the underpayment as if no extension had been granted. Extension requests go through Webfile.2Comptroller of Public Accounts. Franchise Tax

How to File Through Webfile

Webfile, accessed through the Comptroller’s eSystems portal, is the standard filing route.12Texas Comptroller of Public Accounts. Webfile Latest Updates The steps run roughly like this:

  • Create or log into your eSystems account, then add your LLC using the 11-digit taxpayer number and XT Webfile number.13Texas Comptroller of Public Accounts. Create a Webfile Account Step-by-Step
  • Choose the franchise tax option and select the correct reporting year.
  • Complete the Public Information Report with current officer, director, or manager names and physical addresses.
  • Complete the tax portion. Below $2,650,000, you confirm zero liability. Above it, the system walks you through EZ Computation or Long Form.
  • Review each field, then submit. The confirmation screen shows a transaction number and timestamp.

Save or print that confirmation. It is your proof of on-time filing if a dispute ever comes up. Paper filing is also accepted for filers who cannot use the online system; the Comptroller recommends allowing extra time and using certified mail so you have a record of the date.

What Happens if You File Late

Miss May 15 (or your extended November 15 date) and penalties stack up on any tax owed:

  • 1 to 30 days late: 5% of the unpaid tax.
  • More than 30 days late: 10%.
  • After a formal Notice of Tax Due: another 10%, for a total of 20%.14Texas Comptroller. Penalties for Past Due Taxes

A flat $50 penalty applies to each late report, and interest accrues on unpaid tax from the original due date. LLCs that owe no franchise tax are not off the hook: skipping the PIR alone can lead to forfeiture.

Forfeiture is the serious consequence. When an LLC fails to file the franchise tax report or pay the tax, the Secretary of State forfeits the entity’s right to transact business in Texas, and if the problem is not fixed, the state can involuntarily terminate the LLC.15Texas Secretary of State. Terminations and Reinstatements FAQs Two things happen once that occurs. A forfeited LLC cannot file or maintain a lawsuit in Texas courts, though it can still defend against suits brought by others. And each director or officer of the forfeited entity becomes personally liable for its debts, including outstanding tax.16Texas Comptroller of Public Accounts. Franchise Tax Account Status Existing contracts remain in force and the LLC keeps title to its property, but it cannot enter new contracts or pursue legal claims until it is reinstated.

How to Reinstate a Forfeited LLC

Reinstatement takes two steps, one with the Comptroller and one with the Secretary of State.

First, get a Tax Clearance Letter from the Comptroller. To qualify, file every missing franchise tax report and PIR, and pay all overdue tax, penalties, and interest.17Texas Comptroller of Public Accounts. Requesting Tax Certificates and Tax Clearance Letters Most LLCs can request the letter through Webfile by selecting “Request Clearance Letter for Reinstatement” from the franchise tax menu. If everything is squared away, the system generates a PDF; if not, it lists what still needs to be resolved.

Second, file an application for reinstatement (Form 801) with the Secretary of State and attach the clearance letter. The filing fee for a domestic LLC is $75.18Texas Secretary of State. Form 801 – Instructions for Application for Reinstatement The application lists the LLC’s name, filing number, the date of termination or forfeiture, and a statement that the circumstances have been corrected. Once processed, the LLC regains its right to transact business and access the courts as if the forfeiture had never happened.