Have an entity registered in Texas? You must file an annual Franchise Tax Report with the Texas Comptroller, even if no tax is technically owed. Failure to file will result in forfeiture of your right to transact business.

Do you own or are a partner in an entity operating within the state of Texas? Those notices you get from the state are actually very important. Make sure you’re paying attention and act quickly, or you may lose your right to conduct business.  (Not to mention a required fee to get it reinstated, that is if your business name hasn’t been assumed by someone else yet!)

Ok, I’m listening – Who has to file?

• Texas LLCs
• Texas Corporations
• Texas Limited Partnerships
• Foreign entities registered in Texas
• Nonprofits (with special rules)

Basically, if you conduct any business in the state (other than assumed names / DBAs) you will have to file.

 

What’s the Deadline to file?

May 15 of each year.

 

What Must Be Filed?

 

No Tax Due Report

For the 2024 report year and later, a taxable entity whose annualized total revenue is less than or equal to the No Tax Due Threshold is not required to file a No Tax Due Report. However, the entity is required to file Form 05-102, Public Information Report (PDF) or Form 05-167, Ownership Information Report (PDF).

 

EZ Computation Report

Texas allows you to use the EZ Computation method if your total revenue is under the annual threshold (the threshold changes periodically — currently several million dollars).

Under EZ:

• You pay a flat percentage of total revenue
• You don’t deduct cost of goods sold or compensation
• It’s simpler but sometimes results in higher tax

 

Long Form Franchise Tax Report

As an entity holder in Texas, you may need to file the Long Form Franchise Tax Report instead of the EZ Computation.

Even if your business owes $0 in franchise tax, you are still required to file the appropriate report along with a Public Information Report (PIR) or Ownership Information Report (OIR). Failure to file can result in penalties, loss of good standing, and possible forfeiture of your entity.

 

Public Information Report (PIR)

The PIR exists to keep the state’s records current and transparent. The report updates Texas on key details such as:

• Officers, directors, or managing members
• Registered agent and business address
• General ownership or management structure

This information becomes part of the public record and helps the state confirm who is legally responsible for the entity.

Even if your business is inactive or falls under the “No Tax Due” threshold, the report is still required.

Step-by-Step: Filing Yourself

1. File via the Texas Comptroller Webfile system

 

Common Mistakes

• Assuming no revenue = no filing required
• Missing the Public Information Report
• Filing after May 15 without extension

 

What Happens If You Don’t File

• Notice of Intent to Forfeit
• Loss of good standing
• Potential personal liability exposure

 

Why Many Businesses Choose Managed Compliance

• Calendar tracking
• Deadline reminders
• Centralized document storage
• Reduced risk of missed filings

 

Want Help?

If you prefer not to manage state deadlines manually, Venture Vault offers compliance support as part of our Premier Suite or as an add-on service.

 

Related Articles

• Notice of Intent to Forfeit – What It Means
• Annual Reports Explained