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Business Formation Guide
annual requirementsUpdated 2026-03-30

Texas LLC Annual Report

---|---------| | Report Name | Public Information Report (PIR) or Ownership Information Report (OIR) | | Filing Frequency | Annual | | Filing Fee | $0.00 | | Due Date | May 15 annually | | Filing Authority | Texas Comptroller of Public Accounts (not Secretary of State) | | First Report Due | May 15 of the year following formation | | Online Filing | Yes, available at comptroller.texas.gov | | Late Penalty | $50 flat fee; 5% penalty if 1–30 days late; 10% penalty if over 30 days late | | Grace Period | None | | Consequences of Missing Deadline | Forfeiture of right to transact business; involuntary termination by Secretary of State | | Reinstatement Fee | $75.00 |

Frequently Asked Questions

Q: Where do I file my Texas LLC annual report?

A: You file with the Texas Comptroller of Public Accounts, not the Secretary of State. The Comptroller administers franchise tax reporting for all Texas business entities. You can file online at comptroller.texas.gov or submit forms by mail to the Comptroller's office in Austin.

Q: What happens if I miss the May 15 deadline?

A: You face a $50 penalty immediately. If your report is 1–30 days late, you owe an additional 5% penalty on taxes due. If it's over 30 days late, the penalty jumps to 10%. After tax forfeiture, the Secretary of State may involuntarily terminate your LLC's right to transact business in Texas. There is no grace period.

Q: Can I get an extension to file my annual report?

A: Yes, but only if you meet specific conditions. Under Tex. Tax Code § 171.2021, you can request an extension by May 15 and remit either 90% of estimated tax due or 100% of the prior year's tax. Extensions are granted until November 15 (for non-electronic filers) or August 15 (for electronic filers), with a second extension possible to November 15 if you file by August 15.

What Information Must You Include in Your Annual Report?

Your Texas LLC annual report must contain specific financial and organizational information. According to Tex. Tax Code § 171.2021(a), you must provide:

  • Principal office address and principal place of business
  • Names and addresses of all officers, directors, managers, or members
  • Secretary of State file number for your LLC
  • Registered agent information (name and address)
  • Financial information necessary to compute franchise tax liability under Texas Tax Code Chapter 171

The Comptroller supplies official forms for filing. You cannot use a generic form; you must use the Comptroller's designated report form to ensure compliance.

Franchise Tax Calculation Information

Your report must include enough detail for the Comptroller to calculate your franchise tax obligation. Texas imposes a franchise tax on taxable margin, not gross revenue. Under Tex. Tax Code § 171.101, taxable margin is the lesser of:

  • 70% of total revenue, or
  • Total revenue minus $1 million

The standard franchise tax rate is 0.75% of taxable margin. However, if your annualized total revenue does not exceed $2,650,000 (the 2026 threshold), you owe no franchise tax—though you must still file the annual report.

Retail and wholesale businesses pay a reduced rate of 0.375%. The Comptroller also offers an EZ computation rate of 0.331% for eligible entities.

How to File Your Texas LLC Annual Report

Filing your annual report is straightforward and free. The Texas Comptroller offers online filing, which is the fastest method.

Online Filing Steps

  1. Visit comptroller.texas.gov and navigate to the franchise tax reporting section
  2. Create or log into your account using your Secretary of State file number
  3. Complete the Public Information Report form with your LLC's current information
  4. Upload or enter your financial data (revenue, deductions, taxable margin)
  5. Review for accuracy and submit electronically
  6. Print your confirmation for your records

Online filing typically processes within 1–2 business days. You receive immediate confirmation of submission.

Paper Filing (If Preferred)

If you prefer mailing your report:

  • Request forms from the Comptroller or download them at comptroller.texas.gov
  • Complete all required fields legibly
  • Mail to: Texas Comptroller of Public Accounts, P.O. Box 13697, Austin, TX 78711-3697
  • Allow 2–3 weeks for processing
  • Include a check if franchise tax is due (payable to "Comptroller of Public Accounts")

Note: Paper filing takes longer and increases the risk of missing the May 15 deadline. Online filing is strongly recommended.

What If Your Information Changes During the Year?

You are not required to file a separate report for mid-year changes (e.g., new manager, address change). However, you must report all current information as of the report due date on your annual filing. If your registered agent changes, you must notify the Secretary of State separately under Tex. Bus. Orgs. Code § 101.

Critical Deadlines for 2026

Primary Filing Deadline: May 15, 2026

Your annual report is due on May 15 each year. This applies to all Texas LLCs, regardless of formation date. Your first report is due May 15 of the year following your LLC's formation. For example, if you formed your LLC in 2025, your first report is due May 15, 2026.

Extension Deadlines (If Requested by May 15)

If you request an extension on or before May 15, the Comptroller grants additional time:

  • Non-electronic filers: Extension to November 15 (if you remit 90% of estimated tax or 100% of prior year tax)
  • Electronic filers: Extension to August 15 (with same payment requirement)
  • Second extension: From August 15 to November 15 (if you remit the remaining balance)

Extensions require advance notice on the Comptroller's form. You cannot request an extension after May 15.

Franchise Tax Payment Deadline

If franchise tax is due, payment is also due by May 15 (or your extension date). Underpayment penalties accrue if you don't remit at least 90% of your estimated liability by the original deadline.

Late Filing Penalties and Consequences

Missing the May 15 deadline triggers immediate financial and legal consequences. Texas imposes strict penalties to enforce compliance.

Penalty Structure

Timing Penalty
1–30 days late $50 flat fee + 5% of tax due
Over 30 days late $50 flat fee + 10% of tax due
After 61 days Interest accrues on unpaid taxes at the statutory rate

Example: If your report is 45 days late and you owe $1,000 in franchise tax, you pay $50 + (10% × $1,000) = $150 in penalties, plus the $1,000 tax.

Forfeiture of Right to Transact Business

If you remain delinquent, the Comptroller may forfeit your LLC's right to transact business in Texas. This means you cannot legally:

  • Enter into contracts
  • Sue or be sued in Texas courts
  • Conduct business operations
  • Renew licenses or permits

Involuntary Termination by Secretary of State

After the Comptroller certifies tax forfeiture, the Secretary of State may involuntarily terminate your LLC. Termination is permanent unless you reinstate.

Reinstatement: Getting Your LLC Back in Good Standing

If your LLC is terminated for failure to file or pay, reinstatement is possible but requires multiple steps and a $75 fee.

Reinstatement Requirements

To reinstate your LLC, you must:

  1. File all delinquent annual reports with the Comptroller (dating back to the year you missed)
  2. Pay all back taxes, penalties, and interest owed to the Comptroller
  3. Obtain a tax clearance letter from the Comptroller confirming you are current
  4. File a reinstatement application with the Secretary of State, including the tax clearance letter
  5. Pay the $75 reinstatement fee to the Secretary of State

Timeline for Reinstatement

Reinstatement is not automatic. After you submit all documents:

  • The Secretary of State reviews your application (typically 5–10 business days)
  • Upon approval, your LLC is restored to active status
  • You receive a confirmation letter with your restored file number

Important: Your LLC cannot conduct business until the Secretary of State issues reinstatement approval. Operating while terminated exposes you to personal liability and additional penalties.

Avoiding Reinstatement Costs

The simplest approach is to file on time. A $0 filing fee and no penalties is far cheaper than $75 reinstatement plus back taxes and penalties.

Texas Franchise Tax Basics for LLC Owners

Understanding Texas franchise tax helps you prepare your annual report accurately.

No State Income Tax, But Franchise Tax Applies

Texas has no state income tax. However, all LLCs with revenue above the threshold must pay franchise tax to the state. This is a privilege tax on the right to do business in Texas, not an income tax.

Revenue Threshold for 2026

You owe no franchise tax if your annualized total revenue does not exceed $2,650,000. However, you must still file the annual report to claim the exemption. Filing costs nothing; skipping the report costs $50 minimum in penalties.

How Taxable Margin Is Calculated

Taxable margin is the amount on which tax is imposed. Under Tex. Tax Code § 171.101, it is the lesser of:

  • 70% of total revenue, or
  • Total revenue minus $1 million

Example: If your LLC has $3 million in revenue:

  • 70% of $3M = $2.1M
  • $3M – $1M = $2M
  • Taxable margin = $2M (the lesser amount)
  • Tax at 0.75% = $15,000

Tax Rates by Business Type

  • Standard rate: 0.75% of taxable margin
  • Retail/wholesale: 0.375% of taxable margin
  • EZ computation rate: 0.331% of taxable margin (simplified calculation)

Your annual report must identify which rate applies to your LLC.

Federal Tax Treatment of Your LLC

For federal income tax purposes, your LLC's default classification depends on membership:

  • Single-member LLC: Treated as a disregarded entity (you file Schedule C with your personal return)
  • Multi-member LLC: Treated as a partnership (you file Form 1065)

You can elect to be taxed as an S corporation or C corporation if it benefits your situation. This election does not change your state franchise tax obligation but may reduce it if you elect S corp status and pay yourself a reasonable salary.

Key Takeaways for 2026

  1. File by May 15, 2026 with the Texas Comptroller (not Secretary of State)
  2. Filing is free, but missing the deadline costs $50 minimum plus penalties
  3. Include current officer/manager names, addresses, and financial information on your report
  4. File online at comptroller.texas.gov for fastest processing
  5. Request an extension by May 15 if you need more time; extensions are available until November 15
  6. Franchise tax is due if revenue exceeds $2,650,000 (2026 threshold), but you must file even if exempt
  7. Missing the deadline triggers forfeiture and involuntary termination; reinstatement costs $75 plus back taxes
  8. No grace period exists—penalties apply immediately after May 15

Contact Information

Texas Comptroller of Public Accounts

Texas Secretary of State (for LLC formation and reinstatement)

Disclaimer: This content is based on Texas Tax Code Chapter 171 and Texas Business Organizations Code provisions current as of 2026. Tax law changes frequently. Consult a Texas CPA or tax attorney for advice specific to your LLC's situation.

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