1. What is the Texas Franchise Tax Report?
The Texas Franchise Tax Report is an annual state-level compliance filing for many entities that do business in Texas. It is commonly filed with the Texas Comptroller of Public Accounts and is often paired with an information report (like the Public Information Report (PIR) or the Ownership Information Report (OIR) ). Even when your business owes $0 franchise tax, you may still have required filings.
2. What Most Texas LLCs Must File
Texas franchise tax compliance usually includes two parts: the franchise tax report plus an information report. Which report you file depends on your revenue and entity type.
Annual compliance checklist (typical)
- Texas Franchise Tax Report: filed annually (format varies based on your situation)
- Public Information Report (PIR) or Ownership Information Report (OIR): required for many entities to satisfy franchise tax requirements
- Pay any tax due (if applicable): keep proof of payment and confirmation
- Maintain correct addresses + officer/member info: prevents mismatches and notice issues
3. No Tax Due Threshold (2025) — What It Really Means
Texas uses a no-tax-due threshold (based on annualized total revenue). If your revenue is at or below the threshold, you generally owe no franchise tax. For the 2025 report year, the threshold is commonly referenced as $2,470,000.
Important: “No tax due” does NOT always mean “nothing to file”
- If you are at/below the threshold (2024+), you may not be required to file the “No Tax Due Report”
- However, you may still be required to file an annual PIR or OIR
- Filing the information report helps keep your entity records current for compliance
If you only remember one thing: Texas franchise tax compliance is “report + info report.” Even when tax is $0, filing obligations can still exist.
4. Texas Franchise Tax Due Date + Extensions
Texas franchise tax reports are commonly due by May 15 each year. If you need more time, Texas allows extensions (and the extended due date commonly points to Aug. 15), but you should follow the correct extension method and keep proof.
Common filing timeline
- Due date: typically May 15
- Extension: file an extension properly if needed
- Keep proof: receipts, confirmations, and copies
What can cause delays?
- Missing Webfile access / taxpayer number
- PIR/OIR details not ready (officers/members, addresses)
- Unclear revenue classification and report type selection
- Waiting until the last week (system load + missing documents)
STAY COMPLIANT
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Get Compliance Help5. Where to File + What You’ll Need
Texas franchise tax reporting is typically handled through the Texas Comptroller filing system (often via Webfile). Before you start, prepare your core entity details so you can file without errors.
What you should keep ready
- Legal entity name and Texas taxpayer number (if available)
- Entity type and federal tax classification
- Current addresses (mailing, principal office) and registered agent details
- Officer / director / manager / member information (for PIR/OIR)
- Annualized total revenue details (to choose the right report type)
Why founders use a compliance service
- Avoid missed deadlines and compliance notices
- Reduce errors in PIR/OIR information and report selection
- Keep clean records for banking and payment processors
| Feature | FormLLC | Provider A | Provider B |
|---|---|---|---|
| Built for non-US founders | ✅ Deep non-resident focus | ➖ Limited support | ➖ Generic templates |
| Texas reporting clarity (PIR/OIR + report type) | ✅ Step-by-step guidance | ➖ Partial | ➖ DIY-heavy |
| Transparent pricing | ✅ No surprise upsells | ⚠️ Hidden add-ons | ⚠️ Tiered upsells |
| Human support (WhatsApp / email) | ✅ Dedicated support | ➖ Ticket-based | ➖ Slow response |
*Sample stats for illustration. Add your real numbers and link to verified reviews.
The most common Texas issue is not the tax—it’s missing the required filing or missing the PIR/OIR. Staying current helps avoid unnecessary problems with banks, payment gateways, and vendor verification.
6. How to File Texas Franchise Tax (Step-by-Step)
Step 1: Confirm whether you are above or below the no-tax-due threshold
Identify your annualized total revenue and determine whether you’re at/below the threshold for the report year. This affects what you owe and which report type applies.
Step 2: Determine what you must file (report + PIR/OIR)
Most entities should plan to file the franchise tax report plus an information report (PIR or OIR). Even if tax owed is $0, you may still have a filing requirement.
Step 3: File online (recommended) and save the confirmation
Many Texas entities file online using the Comptroller’s system (often via Webfile ). Online filing is faster and helps you keep a clean record for compliance history.
Step 4: Submit the PIR/OIR accurately
Provide accurate officer/member/owner details and addresses. Incorrect information can cause notices or mismatches later. Save a copy of the information report for your records.
Step 5: If you need more time, file an extension correctly
If you won’t meet the deadline, file an extension properly and keep proof. Extensions are common, but you must follow the required method.
7. Tips to Stay Compliant
- Set reminders for May 15 and start preparing 2–3 weeks earlier
- Keep officer/member info updated so PIR/OIR is quick and accurate
- Save proof of filing (PDF copies + confirmation numbers)
- If you change addresses or management structure, update records consistently
8. Fees, Penalties & Good Standing
- Franchise tax due: depends on revenue, margins, and entity classification
- Below threshold: often $0 tax, but filing obligations may still exist
- Late filings: can trigger penalties/interest and compliance notices
- Good standing impact: missing filings can affect banking, payment platforms, and vendor onboarding
| Compliance Item | Typical Timing | Fee |
|---|---|---|
| Texas Franchise Tax Report | Annually (commonly May 15) | Varies / $0 possible |
| PIR (Public Information Report) or OIR (Ownership Information Report) | Annually (with franchise tax deadline) | $0 (filing requirement) |
| Extension (if needed) | Before deadline | Varies (rules depend on method) |
| Registered Agent Renewal (if using a service) | Annually | $100–$300 |
| Federal Income Tax Return | Annually | Varies |
9. Federal Items That Commonly Come Up
1. Federal tax return (IRS)
Your federal tax filing depends on classification (single-member, partnership, S-corp election, etc.). While this is separate from Texas franchise tax, founders often align recordkeeping and yearly compliance around the same season.
2. EIN (Employer Identification Number)
Your EIN (Employer Identification Number) is commonly needed for banking, payroll, payment processors, and vendor onboarding. Keep your EIN confirmation (issued by the IRS ) and core entity documents in your compliance folder.
3. BOI updates (Corporate Transparency)
If your ownership or key information changes, you may need to update beneficial ownership information (BOI) (where applicable). This is separate from Texas franchise tax reporting but is often reviewed during annual compliance planning.
4. Other recurring federal obligations
- Payroll tax filings if the company has employees
- Information returns (such as 1099s) when required
- Clean bookkeeping for audits, banking, and compliance reviews
10. Conclusion
The biggest takeaway: Texas franchise tax compliance is usually about filing on time and filing the correct combination of documents (often the franchise tax report + PIR/OIR). Even if tax owed is $0, you may still have a filing requirement.
With FormLLC, you can stay compliant without confusion—our team helps you follow the right schedule, file the right forms, and keep your business in good standing.
11. Frequently Asked Questions
Texas franchise tax reports are commonly due by May 15 each year. If May 15 falls on a weekend or holiday, the due date usually moves to the next business day.
For the 2025 report year, the Texas no-tax-due threshold is commonly referenced as $2,470,000 in annualized total revenue. If you are at/below this threshold, you generally owe $0 franchise tax.
Often, yes. Even when tax due is $0, Texas may still require an annual Public Information Report (PIR) or Ownership Information Report (OIR) depending on your entity type.
The PIR is an annual information report used to satisfy franchise tax requirements and keep public entity information updated. It is generally due on the same date as the franchise tax report.
Yes. Many entities file through the Comptroller’s online filing system (often via Webfile). Most filings can be completed online if you have your access details ready.
Missing required filings can trigger penalties/interest and compliance notices, and may later create issues during banking or payment processor verification. If you missed a deadline, file as soon as possible and keep proof.
Texas allows franchise tax extensions . Many extensions point to an extended due date of Aug. 15, but you must follow the correct extension method and keep proof.
