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 Public Information Report (Form 05-102), paired with a franchise tax report if your revenue is above the no-tax-due threshold. 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 and 2027 report years, up from $2.47 million for 2024 and 2025) 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 no longer file the old No Tax Due Report (the Comptroller discontinued it for reports due from January 1, 2024), but you still owe the Public Information Report on time.

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 at the rate for your business type: for 2026 and 2027, 0.375% for retail and wholesale, 0.75% for most others, or 0.331% under the EZ computation. Below it, there's no tax report to file, and the Public Information Report alone 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 Comptroller says the first report is due on May 15 of the year after the entity became subject to the tax. So if you form mid-year, your first franchise filing lands the following May. Mark it, because 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.

Every LLC files the Public Information Report, Form 05-102, whether or not it owes tax. The Comptroller is explicit that it's due on the franchise tax due date even when revenue is at or below the no-tax-due threshold. There's no state fee for it.

What the PIR contains

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

In effect, the PIR does for Texas what an annual report does in other states: it refreshes the public snapshot of who runs the company. One thing it doesn't do is change your registered agent. That record belongs to the Secretary of State, and changing it takes a Form 401 filing ($15). 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 Webfile system or by mail. 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:

• A $50 penalty. The Comptroller assesses it on each report filed after the due date. If tax is owed, 5% is added when it's paid 1 to 30 days late and 10% after 30 days, with interest starting on day 61.
• Forfeiture of the right to transact business. After a notice and at least 45 more days, the Comptroller forfeits your LLC's right to do business in Texas. A forfeited LLC can't sue or defend itself in a Texas court, and each officer or director becomes liable for the company's debts (Tax Code §§ 171.2515 and 171.255).
• Forfeiture of the entity. The Secretary of State then forfeits the LLC itself under the Tax Code.

Getting reinstated

Reinstatement is available at any time, but it's a checklist: file every delinquent report, pay the tax, penalties and interest, get a tax clearance letter from the Comptroller, and file Form 801 with the Secretary of State with its $75 fee. For a small LLC that owed zero tax to begin with, forfeiture turns a free obligation into a real cost, which is 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 Form 401 with the Secretary of State ($15); the Public Information Report won't do it for you. 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.