Forming a Texas LLC is only the first step – maintaining it requires annual compliance filings with state agencies.
Unlike many states that require an annual report, Texas requires LLCs to file an annual franchise tax report and a Public Information Report (PIR) with the Texas Comptroller of Public Accounts, even if the LLC owes $0 in tax.
Missing these filings can result in penalties, forfeiture of the right to transact business, and eventual administrative dissolution.
This article details all annual filing requirements for Texas LLCs, including deadlines, forms, fees, no-tax-due thresholds, and step-by-step instructions for filing online through the Comptroller's WebFile system.
Understanding the Texas Franchise Tax
The Texas Franchise Tax is not an income tax – it is a privilege tax imposed on entities for the privilege of doing business in Texas.
The tax rate is 0.375% for retail and wholesale businesses and 0.75% for all other businesses (including professional services, real estate, and consulting).
However, the "no tax due" threshold exempts LLCs with annual revenue below a certain amount from paying any tax.
For 2026, the no-tax-due threshold is approximately $2.47 million (adjusted every two years for inflation).
If your LLC's revenue is below this threshold, you owe $0 franchise tax.
But – and this is critical – you must still file an annual report.
Two filings: Franchise Tax Report and Public Information Report
Every Texas LLC must file two components annually:
- Franchise Tax Report (Form 05-163 for no-tax-due filers, or Form 05-158 for EZ computation, or Form 05-160 for long form): This calculates your tax liability. For LLCs with revenue below the no-tax-due threshold, you file the No Tax Due Information Report (Form 05-163). For LLCs with revenue above the threshold, you file an EZ or long form depending on your total revenue.
- Public Information Report (PIR): This separate document discloses the names and addresses of all members (for member-managed LLCs) or managers (for manager-managed LLCs). The PIR is a public record. Even if you owe $0 tax, you must file the PIR annually.
Annual filing deadline
The franchise tax report and PIR are due May 15th of each year.
The report covers the prior calendar year (January 1 – December 31). For example, the report due May 15, 2026 covers the period January 1, 2025 – December 31, 2025.
If May 15th falls on a weekend or state holiday, the deadline is the next business day.
There is no extension for filing the report, but you can request an extension for payment of tax (if any is due) – but the report itself must be filed on time.
Step-by-step filing instructions via WebFile
Step 1: Obtain your Texas taxpayer number
When you first formed your LLC and registered for franchise tax (which is automatic when you applied for sales tax or filed your Certificate of Formation with the SOS), the Comptroller assigned you an 11-digit taxpayer number.
This number is also called a Comptroller ID. If you have lost it, call the Comptroller's Taxpayer Services at (800) 252-1381 or look it up using your SOS file number.
Step 2: Log into WebFile
Go to the Texas Comptroller's WebFile system at https://comptroller.texas.gov/taxes/franchise/webfile/. Enter your taxpayer number and password.
If you have not set up a WebFile account, click "New User" and register using your taxpayer number and a PIN mailed to you when you first registered.
If you never received a PIN, call the Comptroller to have it re-mailed (allow 5-7 business days).
Step 3: Determine your filing type
The system will ask questions about your total annual revenue and your primary business activity.
Answer truthfully. Based on your answers, the system will assign you a filing type:
- No Tax Due Information Report (Form 05-163): Use if your revenue is below the no-tax-due threshold ($2.47 million for 2026). You will owe $0 tax.
- EZ Computation (Form 05-158): Use if your revenue is above the threshold but below $20 million, and you are not a professional services business (or are a professional services business with revenue under $10 million).
- Long Form (Form 05-160): Use if your revenue exceeds $20 million or if you are a professional services business with revenue over $10 million.
Step 4: Complete the Public Information Report (PIR) section
All filers must complete the PIR. The system will display a form requiring:
- LLC name and file number (pre-populated).
- Principal business address (update if changed).
- Registered agent name and address (update if changed – if you changed agent during the year, you must first file Form 401 with the SOS before the PIR can reflect the change).
- Management structure: member-managed or manager-managed.
- List of all members (for member-managed LLCs) or all managers (for manager-managed LLCs) as of December 31st of the reporting year. For each individual, provide full legal name, title, and physical address (cannot be a PO Box).
If the LLC had dozens of members, you can attach a separate list as an exhibit.
If a member or manager changed during the year, list all individuals who served at any point, not just those at year-end.
Double-check spelling – errors can cause mismatches with SOS records.
Step 5: Complete the tax computation section (if applicable)
If you are filing the EZ or long form, you will need financial information: total revenue, cost of goods sold (for retail/wholesale), compensation (for non-retail), and total deductions.
Have your financial statements (P&L, balance sheet) ready. The system will calculate the tax due – typically 0.375% or 0.75% of the taxable margin.
You can pay online by credit card (2.0% convenience fee) or e-check (free).
If you owe tax, payment is due by May 15th. Late payment penalties are 5% of the tax due plus 0.5% interest per month.
Step 6: Review and submit
Review all information. Pay special attention to the PIR – errors here are common.
After submission, the system provides an electronic confirmation. Print or save this confirmation as proof of filing.
You do not receive a paper receipt unless you request one.
What if you formed your LLC mid-year?
If you formed your LLC on July 1, 2025, you still must file a franchise tax report by May 15, 2026 for the period July 1 – December 31, 2025 (partial year).
The Comptroller's system will annualize your revenue for the threshold calculation. For example, if you earned $1 million in those 6 months, the annualized revenue is $2 million, which may still be below the no-tax-due threshold.
The PIR must include all members who held ownership at any time during that partial year.
Penalties for late or non-filing
The Comptroller imposes severe penalties:
- Late filing penalty: $50 if filed within 30 days after deadline; $100 if filed 31-90 days late; $500 if filed more than 90 days late or never filed.
- Interest on unpaid tax: 0.5% per month on any tax due.
- Forfeiture of right to transact business: If you fail to file for two consecutive years, the Comptroller will notify the Secretary of State, who will forfeit your LLC's right to do business in Texas. Forfeiture means your LLC cannot enter into contracts, file lawsuits, or hold a Certificate of Good Standing. You can be sued, however. To reinstate, you must file all past-due reports, pay all penalties, and pay a $500 reinstatement fee to the SOS.
- Personal liability of managers: In some cases, if the LLC is forfeited, the Comptroller can assess penalties against individual managers who knowingly failed to file.
How to reinstate a forfeited LLC
If your LLC has been forfeited, follow these steps:
- File all delinquent franchise tax reports and PIRs through WebFile.
- Pay all past-due taxes, penalties, and interest.
- After the Comptroller clears your account, file Form 811 (Application for Reinstatement) with the Texas Secretary of State. The fee is $100 for LLCs (for-profit) or $25 for non-profits. The SOS will reinstate the LLC retroactively to the forfeiture date.
Special rule for new LLCs: First year exemption
Texas law provides a one-time exemption from franchise tax for the first year of an LLC's existence IF the LLC was formed after January 1 of the prior year.
Example: an LLC formed in 2025 does not owe franchise tax (or filing) for the 2025 reporting period (due May 2026) because the first-year exemption applies?
Not exactly. The rule is that an LLC is not required to file a franchise tax report for its first year if it had no revenue?
Actually, clarification: The Texas Tax Code Section 171.002 provides that a new entity is not subject to franchise tax for its first 12 months if it was not doing business?
Many LLCs still choose to file a no-tax-due report to start the compliance clock.
The safest practice is to file a report anyway, even if exempt, to avoid a gap in records.
Consult a tax professional for your specific situation.
Pro tip: Set a recurring calendar reminder for April 1st each year to file your franchise tax report and PIR.
Do not wait until May 15th – technical issues with WebFile or missing documents can cause you to miss the deadline.
If you use a registered agent service (like Northwest or ZenBusiness), many offer automatic franchise tax filing as an add-on service ($50 to $150 per year).
This is particularly helpful for business owners who are not comfortable with tax forms or who travel frequently.