File Your Texas Franchise Tax and Annual Report on Time to Stay Compliant

If your business operates in Texas, mark May 15 on your calendar. That’s the annual deadline to file two important documents: the Franchise Tax Report and the Public Information Report (PIR).

Think of the Franchise Tax Report as your business’s yearly check-in with the Texas Comptroller. It tells the state how much revenue your company earned and whether you owe any franchise tax. 

The Public Information Report (PIR), on the other hand, updates the state’s records with your current business address, ownership, and registered agent details.

Even if your business didn’t make any money last year, you’re still expected to file both. And missing the deadline? That could mean late fees, interest, or even losing your good standing with the state.

In this guide, we’ll walk you through exactly what’s required, who needs to file, and how Inkle can help you handle the entire process without the last-minute scramble.

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What You Need to Know About Texas Annual and Franchise Tax Reports?

Unlike many other states, Texas doesn’t require a traditional “annual report” from LLCs and corporations. But that doesn’t mean you’re off the hook.

Instead, the state expects most business entities to file two specific reports each year:

• Franchise Tax Report – This report is used to calculate and report the franchise tax owed based on your company’s revenue. Even if your business qualifies for “no tax due,” the report still needs to be submitted.
  
  
• Public Information Report (PIR) – This report provides updated details about your business’s ownership, officers, registered agent, and address. It’s how the state keeps its records accurate.

Both reports are submitted to different departments. The Franchise Tax Report goes to the Texas Comptroller of Public Accounts, while the PIR is filed with the Texas Secretary of State. Together, they serve as the state’s way of verifying that your business is active, compliant, and transparent.

Failing to file either report can impact your business’s legal status, so it’s essential to treat them as part of your core annual responsibilities.

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How to Prepare and File Texas Franchise Tax and Annual Reports with Inkle

You have two ways to file your Texas reports: online through the Texas Comptroller’s Webfile system or by mailing physical forms. While these are valid options, they can get messy, especially if you're managing multiple entities, gathering financial data from different sources, or just pressed for time:-

i) Online Filing via Webfile - The Texas Comptroller’s Webfile system allows you to log in with a taxpayer ID and submit both your Franchise Tax Report and PIR electronically. It’s faster than mail, but requires accurate manual entry of financial data and business information. If you’re filing for multiple entities or not familiar with state forms, it’s easy to make errors.

ii) Filing by Mail - You can also print and submit physical copies of your reports to the appropriate state departments. This method is slower and leaves room for delays, especially close to the May 15 deadline. It also requires more admin work - downloading forms, typing in details, calculating tax, printing, signing, and mailing to the right addresses.

For busy founders or finance teams, neither option feels efficient. That’s why many growing businesses use Inkle to simplify the entire process.

Here’s how Inkle makes it easier:

Step 1: Sync your financial data

Inkle connects to your accounting tools (like QuickBooks or Xero) to pull in your revenue and expenses. This makes it easy to calculate the franchise tax you owe.

Step 2: Auto-fill your reports

Inkle pre-populates both your Franchise Tax Report and Public Information Report with accurate business info like NAICS codes, ownership details, and registered agent information so you don’t have to.

Step 3: File both reports for you

Inkle submits everything to the correct government departments, on time. You’ll get confirmation and tracking updates for peace of mind.

Step 4: Stay compliant every year

With Inkle, compliance isn’t a one-time rush. You get proactive reminders, deadline alerts, and a secure digital archive of all your filings.

In short: no paperwork, no government logins, no stress. Just clean, compliant filings - done for you.

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Which Businesses Must File Texas Franchise Tax and PIR Reports?

Not every business in Texas has to file these reports but most do. If you're running a formal business entity like an LLC or corporation, chances are you're required to file both the Franchise Tax Report and the Public Information Report each year.

Here’s a quick breakdown of who needs to file:

• Businesses which are required to file:
  
  • Limited Liability Companies (LLCs)
  • Corporations (C-Corps and S-Corps)
  • Limited Partnerships (LPs)
  • Limited Liability Partnerships (LLPs)
  • Professional associations and other taxable entities
    
    
• Business which are exempt from filing:
  
  • Sole proprietorships (not registered with the Secretary of State)
  • Certain general partnerships
  • Qualified nonprofits and specific exempt organizations
  • Some insurance companies regulated by the state

For 2025, if your total revenue is below $2.47 million, you still need to file but you’ll likely qualify for “No Tax Due” status. That means you owe no payment, but the reports still have to be submitted.

Here’s a quick reference table:

When in doubt, it’s safer to check your entity status or use a tool like Inkle to confirm what’s required for your business.

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What to Include in the Franchise Tax and Public Information Reports?

Filing your Texas Franchise Tax Report and Public Information Report isn’t just about ticking a box; it’s about submitting accurate, up-to-date information the state uses to assess taxes and maintain your business’s legal record.

Here’s what each report typically includes:

i) Franchise Tax Report

Filed with the Texas Comptroller, this report focuses on your business’s revenue and tax responsibility. It requires:

• Taxpayer Number – Issued by the Comptroller when your business is registered
• Texas SOS File Number – Assigned by the Secretary of State
• Accounting Year Dates – Your fiscal year start and end
• Total Revenue – From federal tax returns or financial statements
• NAICS Code – Industry classification code
• Tax Calculation Method – You can choose between two methods:-
  
  • EZ Computation (simpler, available for entities with under $20M in revenue and no deductions)
  • Margin Method (uses revenue minus certain deductions like cost of goods sold or compensation)

Even if no tax is owed, you still need to file a “No Tax Due” version of this report.

ii) Public Information Report (PIR)

Filed with the Texas Secretary of State, the PIR helps the state keep track of who owns and manages your business. It typically includes:

• Legal Business Name and Address
• Registered Agent and Office Address
• Names and Addresses of Officers, Directors, or Members
• Federal Employer Identification Number (FEIN)

The PIR must be updated annually even if your business information hasn’t changed.

Accuracy matters here. Mistakes or omissions can lead to processing delays, state notices, or even rejection of your filing. Tools like Inkle help auto-fill these reports using verified financial and business data so nothing gets missed.

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Penalties for Not Filing Franchise Tax or PIR in Texas

Missing your Texas franchise tax or public information report filing isn’t just a minor oversight, it can create real problems for your business.

Here’s what happens if you don’t file:

i) $50 Penalty (Minimum)

If you miss the May 15 deadline, the state imposes a $50 late filing fee even if no tax is due. This applies separately to each report.

ii) Interest on Unpaid Tax

If you owe franchise tax and fail to pay on time, interest begins accruing immediately on the unpaid amount.

iii) Loss of Good Standing

The Texas Secretary of State may change your business’s status to “Not in Good Standing.” This affects your ability to raise funding, sign contracts, or renew licenses.

iv) Administrative Dissolution

Continued non-compliance can lead the state to dissolve your entity altogether. That means your business loses its legal protections exposing owners to personal liability.

v) Reinstatement Is a Hassle

If your entity is dissolved, you’ll need to file all past-due reports, pay outstanding penalties and taxes, and submit a reinstatement application with additional fees.

In short, filing late or not at all can cost more than just money. It can put your entire business at risk.

If you’re unsure what to file or just don’t want to deal with the paperwork, Inkle can handle it for you - from syncing your financial data to filing on time, every time.

Visit our filing page or Book a free demo to see how Inkle makes Texas franchise tax and annual report filing easy, accurate, and worry-free.

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Frequently Asked Questions

1. Do I need to file Texas Franchise Tax and Public Information Reports if my business made no revenue?

Yes. Even if your business earned no revenue, most Texas entities like LLCs and corporations are still required to file both the Franchise Tax Report and the PIR. If your revenue is below the no-tax-due threshold, you’ll file a “No Tax Due” report, but filing is still mandatory.

2. Can I skip the Public Information Report if my business details haven’t changed?

No. The PIR must be submitted every year, even if none of your business’s information has changed. It confirms your business's ownership and contact information for the state’s records.

3. Can I request an extension for filing the Texas Franchise Tax Report?

Yes. You can request an extension through the Texas Comptroller’s website, but only if you do so on or before May 15. Keep in mind, the extension only delays filing it does not extend the deadline to pay any tax owed.

4. What happens if I miss the May 15 filing deadline for Texas reports?

You’ll face a $50 late filing fee, plus interest on any unpaid franchise tax. Your business may also lose its good standing with the state, and if left unresolved, could be administratively dissolved.

5. How do I reinstate my business if it was dissolved for not filing reports?

To reinstate, you’ll need to:

• File all past-due Franchise Tax Reports and PIRs
• Pay all penalties, fees, and taxes
• Submit a reinstatement application to the Texas Secretary of State

This process can take time and may require additional documentation depending on your entity type.