Who has to file, what the Public Information Report is, why May 15 matters, and what happens when a report is missed — explained in plain English, with flat-fee help when you need it.
Texas franchise tax applies to most businesses formed in Texas or doing business here — including corporations, LLCs, limited partnerships, LLPs, and professional associations. Sole proprietorships and general partnerships owned directly by individuals generally are not taxable entities.
Being small doesn’t take you off the hook. Even an entity that owes no tax still has an annual filing requirement with the Texas Comptroller, and missing it is the most common way a healthy business ends up forfeited.
For reports due in 2024 and later, an entity whose annualized total revenue is at or below the No Tax Due threshold — $2.65 million for 2026 and 2027 reports — owes no franchise tax and no longer files a No Tax Due Report. It must still file a Public Information Report (PIR), or an Ownership Information Report (OIR) for entity types that use it.
Entities above the threshold file the EZ Computation Report or the Long Form and pay any tax due, plus the PIR or OIR. If your entity is behind on years before 2024, those missing years generally still need the No Tax Due Report that applied at the time.
Annual franchise tax reports and PIRs are due May 15 each year. When May 15 falls on a weekend or holiday, the due date moves to the next business day. An extension can be requested on or before the due date.
The Comptroller mails a reminder each January with your Webfile (XT) number, but the obligation is yours whether or not the letter arrives.
When a report or payment is missed, the Comptroller sends a Notice of Intent to Forfeit (Form 05-211). If it isn’t resolved, the entity’s right to transact business in Texas is forfeited — and the Secretary of State can later forfeit the entity’s charter or registration.
A forfeited business cannot operate legally, sue in court, or get financing, and officers and directors can become personally liable for company debts incurred while forfeited. Banks and title companies require active status before they’ll lend or close a real estate deal.
Getting back in good standing means filing every missing franchise tax report and PIR, paying any tax, penalties, and interest owed, and obtaining a Tax Clearance Letter (Form 05-377) from the Comptroller.
If the Secretary of State has also forfeited the entity, the reinstatement application and the $75 SOS filing fee are submitted using that Tax Clearance Letter. The end result is a Certificate of Account Status your bank, title company, or lender will accept. See the full step-by-step reinstatement process.
We start with a free assessment: we look up your entity on the Comptroller’s system, identify every delinquent report, and send a flat-fee quote. Reinstatement is $350 for 1–2 years delinquent with no tax due, $495 for 2–3 years or when an EZ computation is required, and quoted individually for 3+ years or revenue over $2.65M. The $75 SOS fee is a pass-through cost billed separately.
Back reports, PIRs, the tax clearance letter, and SOS reinstatement are fully managed — typically 2–4 weeks end to end. Once you’re current, our annual compliance plan ($19/mo or $189/yr) files your franchise tax report and PIR every May. All professional tax filings are performed by a Texas-licensed CPA firm.
Yes. Revenue at or below the No Tax Due threshold means no tax is owed, but the entity still files a Public Information Report or Ownership Information Report every year by May 15.
$2.65 million in annualized total revenue for 2026 and 2027 reports. Most small businesses are under it and owe no franchise tax — just the required reports.
Yes. Filing the missing reports, getting a Tax Clearance Letter, and completing Secretary of State reinstatement restores good standing — typically 2–4 weeks with us.
Reinstatement starts at a $350 flat fee, and the free assessment tells you your exact price upfront. Annual compliance is $19/mo or $189/yr.
All professional tax preparation and filing services are performed by a Texas-licensed CPA firm.