Texas Franchise Tax and Public Information Report

Texas does not have a traditional "annual report" like many other states. Instead, Texas entities file a franchise tax report and Public Information Report (PIR) each year with the Texas Comptroller. Both are due May 15.

Franchise Tax Overview

The Texas franchise tax applies to most entities doing business in the state — LLCs, corporations, limited partnerships, and others.

Key Thresholds and Rates:

• No-tax-due threshold: Entities with annualized total revenue at or below $2.47 million (as of 2024; adjusted periodically) owe no franchise tax
• Tax rate: 0.375% for qualifying wholesalers and retailers; 0.75% for all other entities
• Calculation basis: Total revenue minus the greater of cost of goods sold, compensation, or a $1 million standard deduction (with limitations)

Important: Even if you owe $0 in franchise tax, you must still file a franchise tax report (either a no-tax-due report or an EZ computation form, depending on your revenue level). Failure to file results in forfeiture.

Public Information Report (PIR)

The PIR is filed alongside the franchise tax report each year. It confirms or updates:

• Registered agent name and address
• Principal office address
• Names and addresses of officers, directors, managers, or members (depending on entity type)
• Nature of business

The PIR is how the state keeps entity information current. Changes to your registered agent, officers, or address should be reflected on this report.

Filing Deadlines

• Annual deadline: May 15
• First filing: Due May 15 of the year following the calendar year in which the entity was formed or registered in Texas
• Extensions: The Comptroller may grant automatic extensions, but specific rules apply

How to File

File through the Texas Comptroller's WebFile system at comptroller.texas.gov. WebFile handles both the franchise tax report and the Public Information Report in a single filing session.

You will need:

• Your entity's WebFile number (or SOS file number to look it up)
• Revenue and financial information for the franchise tax calculation
• Current entity details for the PIR

What Happens If You Miss the Deadline

Penalties and interest: Late filings incur a 5% penalty if filed within 30 days of the due date, and 10% after 30 days, plus interest.

Forfeiture: If the franchise tax report is not filed, the Comptroller notifies the Secretary of State, who may forfeit the entity's right to transact business in Texas.

Consequences of forfeiture:

• The entity cannot maintain a lawsuit in Texas courts
• Officers and directors may become personally liable for entity debts incurred after forfeiture
• The entity must apply for reinstatement, which requires filing all overdue reports, paying all back taxes, penalties, and interest, and obtaining a tax clearance letter from the Comptroller

No State Income Tax — But the Franchise Tax Still Applies

Texas has no state personal income tax, which is a major advantage for LLC owners who take pass-through income. However, the franchise tax is a separate obligation that applies at the entity level based on revenue.

Most small businesses fall below the no-tax-due threshold and owe $0, but they must still file the report. Do not confuse "no state income tax" with "no filing obligations."

How We Help

As your registered agent, we track your franchise tax and PIR deadlines and send reminders before May 15. This is included in your $99/year service.

We do not file on your behalf — the franchise tax report requires your financial data and the PIR requires your current entity details — but we make sure you know when filing is due.

Get Started — $99/year