Texas LLC franchise tax: no annual LLC fee, but a report every May 15

Last verified 2026-10-31. Official sources linked below; unverified items are labeled.

Short answer. A Texas LLC pays no annual LLC fee and Texas has no personal income tax, but every LLC, including a single-member LLC, must file the franchise tax report and the Public Information Report (PIR) every May 15, even when $0 is owed. No tax is due at or below $2.65 million of annualized total revenue (the 2026 report). A late report costs $50 even with no tax due, and failing to file the PIR can forfeit the LLC's right to transact business in Texas. The first report is due May 15 of the year after the LLC becomes subject to the tax. A sole proprietor is exempt from the franchise tax.

Informational only. Not legal or tax advice. Confirmed means read on an official government page on 2026-10-31. Estimates are shown apart and are never added to confirmed totals.

What you must file

Franchise tax report: every LLC, including a single-member LLC, is a taxable entity for the Texas franchise tax and files a report every May 15 (Comptroller franchise tax overview; Comptroller 2026 franchise tax forms page). verified
Public Information Report (PIR, Form 05-102): an LLC files a PIR each year, and it is due even if the entity does not have to file a franchise tax report: "The PIR or OIR is due even if the entity does not have to file a franchise tax report." (Comptroller Public Information Report page). verified The pages read state this rule but did not repeat the date for the PIR; it is understood to be filed with the report on May 15.
No tax due at or below the threshold: "The no tax due threshold for the 2026 report is $2.65 million" (Comptroller 2026 franchise tax forms page). The Comptroller's small-business report describes it as annualized total revenue. verified for the 2026 report; the 2027 threshold is not published, so it is not verified. A $1,000-a-month app (about $12,000 a year) is nowhere near it, and this site does not compute the tax owed above the threshold.
Late fee: "There is a $50 penalty for a franchise tax report filed after the due date, even if no tax is due with that report." (Comptroller franchise tax overview). verified Tax that is owed late carries separate penalties (rates not confirmed here).

Texas Public Information Report (PIR): who has to file it

A Texas LLC files a Public Information Report (PIR, Form 05-102) every year, including a single-member LLC. It is a separate filing from the franchise tax report, and the Comptroller says it is required even when no tax is due: "The PIR or OIR is due even if the entity does not have to file a franchise tax report." (Comptroller Public Information Report page, verified). The pages we read state this rule but did not repeat the PIR date; it is understood to be filed with the report on May 15. A sole proprietor files neither. Skipping the PIR is the serious mistake: see "What happens if you do not file" below.

When the first report is due

The first report is due on May 15 of the year after the year the LLC became subject to the tax: "on May 15 of the year following the year the entity became subject to the tax" (Comptroller franchise tax FAQ, verified). An LLC formed in November 2026 files first on May 15, 2027. If May 15 is a weekend or legal holiday, the due date is the next business day; May 15, 2027 is a Saturday, so that report is due Monday, May 17, 2027 (shift computed by the calculator). For an LLC formed outside Texas and registered there, the Comptroller's questionnaire may set the first due date (not read), so confirm with the Comptroller.

What happens if you do not file

Failing to file the PIR is the serious one. The Comptroller says: "your entity may forfeit its right to transact business if you fail to file a completed and signed PIR or OIR." "The effects of forfeiture include the denial of your entity's right to sue or defend in a Texas court," and "each officer, director, partner, member or owner becomes personally liable for certain debts of the entity" (Comptroller Public Information Report page, verified; the page says "may"). A report filed late costs $50 even when no tax is due.

What is different for a sole proprietor

The franchise tax does not apply to sole proprietorships, except for single-member LLCs (Comptroller franchise tax overview, verified). A sole proprietor therefore has no franchise tax report, no PIR and no May 15 filing. Texas has no personal income tax (Comptroller small-business report), so a sole proprietor's remaining duties are federal: Schedule C, self-employment tax and federal estimated tax on April 15, June 15, September 15 and January 15 (Form 1040-ES; dates on a weekend or holiday move to the next business day). A county Assumed Name Certificate (DBA) may be needed if you trade under a business name; the county sets the fee. The Fort Bend County Clerk charges $15.00 when it notarizes (Fort Bend County Clerk, verified for that county only); other counties were not checked.

Not covered

City and county business taxes and licenses are not covered here and are not in any total. Texas sales tax on software or data processing services is not computed in the totals (an unconfirmed claim says 80% of such a charge may be taxed). Check with the Texas Comptroller before you sell to Texas customers.

Sources (read 2026-10-31)

What this page doesn't tell you

Whether you need an LLC yet, your own first-report date, whether your revenue could exceed the threshold, or what forming in Wyoming would add. The calculator takes your answers and returns a verdict, your numbers and a dated checklist you can download as a PDF and calendar file.

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Frequently asked

Do I owe Texas franchise tax if my LLC made no money?

No tax is due when annualized total revenue is at or below the no-tax-due threshold, which is $2.65 million for the 2026 report. But the LLC must still file the franchise tax report and the Public Information Report (PIR) every May 15, even when it owes nothing. A late report costs a $50 penalty even if no tax is due.

When is the first Texas franchise tax report due for a new LLC?

The first report is due May 15 of the year after the year the LLC became subject to the tax. An LLC formed in November 2026 files its first report in 2027. If May 15 falls on a weekend or legal holiday the due date moves to the next business day: May 15, 2027 is a Saturday, so that report is due Monday, May 17, 2027.

What happens if I do not file the Public Information Report?

The Comptroller says the entity may forfeit its right to transact business in Texas if it fails to file a completed and signed PIR. Forfeiture includes the denial of the right to sue or defend in a Texas court, and each officer, director, partner, member or owner becomes personally liable for certain debts of the entity.

Does Texas have an annual LLC fee or an income tax?

Texas has no annual LLC fee like California's $800 and no personal income tax. The recurring duty is the franchise tax report and Public Information Report each May 15. Federal income tax and self-employment tax still apply to your profit.

Does a sole proprietor pay the Texas franchise tax?

No. The Comptroller says the franchise tax does not apply to sole proprietorships, except for single-member LLCs. A sole proprietor files no franchise tax report and no Public Information Report, but still pays federal tax and may need a county Assumed Name Certificate if trading under a business name.

What is the threshold for later years?

The $2.65 million no-tax-due threshold is the figure for the 2026 report. The threshold for the 2027 report was not published when this page was checked, so it is not verified.

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