Texas LLC Annual Requirements: Franchise Tax and the PIR

Most states make an LLC file a periodic report with the same office that formed it. Texas doesn't. The Secretary of State — the office that processed your Certificate of Formation — does not collect an annual or periodic report from for-profit LLCs. That surprises owners coming from states where you log into the same portal every year to file a quick annual report.

Instead, your recurring obligation runs through the Texas Comptroller of Public Accounts, and it takes the form of the franchise tax report paired with the Public Information Report (Form 05-102). Both are due each year by May 15. Understanding this split — SOS forms you, Comptroller keeps you current — is the single most important thing to know about staying compliant in Texas.

Why this matters practically

Because the obligation isn't with the SOS, you won't get the kind of annual-report reminder you might expect from the office you filed with. The trigger is the calendar, not a portal nudge. Owners who assume "no SOS annual report" means "nothing to do each year" are the ones who end up with a forfeited entity. There is very much something to do each year — it just lives at the Comptroller.

Every taxable entity in Texas, including LLCs, is subject to the franchise tax. "Subject to" does not mean "owes money," which is where the no-tax-due threshold comes in.

The no-tax-due threshold

Texas sets an annualized total revenue threshold — $2.65 million for the 2026 report year — below which an entity owes no franchise tax. The vast majority of small LLCs fall well under it and owe zero. But here's the key nuance: being under the threshold doesn't excuse you from filing. You still file the required report on time; you just owe no tax.

What the report reflects

The franchise tax is based on a business's margin, computed from total revenue with allowable deductions. Above the threshold, the report calculates what you owe using the applicable rate for your business type. Below it, the report establishes that no tax is due. Either way, the filing is what keeps your entity in good standing with the Comptroller. The current-year forms and instructions are on the Comptroller's franchise tax page and the 2026 forms page.

The report year and your first filing

New Texas LLCs don't file in their first partial year of existence — the first franchise report is generally due the year after formation, by May 15. So if you form mid-year, your first franchise filing lands the following May. Mark it: it's easy to forget an obligation that doesn't come due until well after you've formed and moved on to running the business.

Alongside the franchise tax report, most LLCs must file the Public Information Report, Form 05-102. This is the piece that keeps Texas's public record of your company current.

What the PIR contains

• The names and addresses of the LLC's officers, directors, members, or managers (as applicable)
• The registered agent and registered office on file
• The principal office and mailing address

In effect, the PIR does for Texas what an annual report does in other states — it refreshes the state's public snapshot of who runs the company and how to reach it. The PIR/OIR filing requirements page covers which report applies to your entity type.

Why filing the PIR matters even at zero tax

Even when your LLC owes no franchise tax because it's under the threshold, the PIR filing is still required. Skipping it on the theory that "I owe nothing, so I don't need to file" is exactly the mistake that leads to forfeiture. The report, not the payment, is what keeps you compliant.

The deadline

Both the franchise tax report and the PIR are due May 15 each year. If May 15 falls on a weekend or holiday, the deadline shifts to the next business day. File through the Comptroller's system; the Comptroller typically sends notices to the address on file, but you should treat May 15 as a standing annual deadline regardless of whether a notice reaches you.

What missing it triggers

Miss the filing and the consequences escalate:

• Delinquency. The account is flagged as not in good standing with the Comptroller.
• Forfeiture of the right to transact business. Continued non-filing leads the Comptroller to forfeit your LLC's right to do business in Texas — which can suspend your ability to enforce contracts and, in serious cases, expose those who continue operating.
• Loss of SOS good standing. Comptroller forfeiture cascades into problems with the Secretary of State, since good standing depends on being current on franchise obligations.

Getting reinstated

Reinstating a forfeited entity means filing all delinquent reports, paying any tax and penalties owed, and obtaining reinstatement. It's more expensive and slower than simply filing on time. For a small LLC that owed zero tax to begin with, forfeiture turns a free obligation into a real cost — the strongest argument for never missing May 15.

The franchise obligation is the headline, but a compliant Texas LLC has a few other recurring items.

Keep your registered agent current

Your registered agent must stay valid at a Texas street address for the life of the company. If the agent moves, resigns, or you switch, file a change with the Secretary of State. A stale agent leaves you non-compliant even when the franchise filing is current, and it can mean missing a served lawsuit.

Sales-and-use tax

If you sell taxable goods or services, you collect and remit sales tax to the Comptroller on your assigned filing schedule (monthly, quarterly, or annually depending on volume). That's a separate obligation from the franchise report.

Federal filings

Your federal returns run on their own calendar: Schedule C for a single-member LLC, Form 1065 for a multi-member LLC, Form 1120-S for an S-corp election. These have nothing to do with the Texas franchise filing but are part of your overall annual compliance.

Licenses and permits

Any trade or professional licenses and local city or county permits renew on their own cycles. Track them separately; the state won't bundle these reminders with anything else.