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Here is a rule that surprises many Katy owners. Your LLC can owe zero franchise tax and still lose its right to do business in Texas for skipping a one-page report. Texas has no income tax, so a lot of new owners assume the state needs nothing from them. The Comptroller sees it differently. Almost every LLC and corporation in Texas owes a yearly report, due May 15. We prepare that report, track the date, and help you get current if a year was missed.
When You Need Texas Franchise Tax Reports
The franchise tax applies to companies formed in Texas or doing business here. The Comptroller’s franchise tax overview lists corporations, limited partnerships and LLCs, including single-member LLCs, as taxable. Sole proprietors are not, and neither are general partnerships owned entirely by people.
For 2026 and 2027 reports, a company with 2.65 million dollars or less in yearly revenue owes no franchise tax. Since 2024, those companies no longer send in a No Tax Due Report. They still owe an information report every year, and that is the step many small businesses miss. A company above the line files the full franchise tax report and pays the tax.
PIR or OIR: Which Report Does Your Company File?
Corporations, LLCs and limited partnerships file the Public Information Report, Form 05-102. It lists the officers, directors or managers and the registered agent. Other taxable entities file the Ownership Information Report, Form 05-167, instead. The Comptroller’s PIR and OIR filing rules say the report is due even when the company does not have to file a franchise tax report.
What Happens If You Miss the Report
A missed report starts with a Notice of Intent to Forfeit from the Comptroller. If it still is not filed, the state can forfeit the company’s right to do business in Texas. Then each officer, director, member or owner can become personally liable for certain company debts. That is the protection you formed the LLC to get, gone over one skipped form.
Getting back in good standing means filing the missing reports and paying any tax, penalty and interest owed. If you need more time on a full report, the Comptroller allows an extension to a later date, but tax generally has to be paid by May 15 for the extension to count.
Our Texas Franchise Tax Process
We start with your federal return, since the franchise report uses the same revenue figure. Then we confirm your accounting year, your officers or managers, and your registered agent. We prepare the PIR or OIR, or the full report if you are over the line, and go over it with you before filing. If we already prepare your business return, the numbers come straight across.
Texas Franchise Tax Report Cost in Katy
The fee depends on which report you need, whether we also prepare your business return, and how many years are behind. A single current PIR takes far less time than catching up three missed years. We tell you the fee before we start.
Why Choose Us for Texas Franchise Tax Reports
Few tax offices in Katy put the franchise report front and center. We do, because a missed PIR can cost an owner far more than the form itself. Our firm has prepared business returns since 1993, and we stay open after April, so a May 14 phone call still gets answered. Bring your papers to Kingsland Boulevard or send them online.
Franchise reports are one part of our year-round accounting for Texas business owners.
Common Questions
I got a Notice of Intent to Forfeit. What should I do?
Act quickly. Bring us the notice and your last federal return. In most small-company cases, the fix is filing the missing PIR or OIR and any report or tax that is past due. We help you prepare what is missing so the company can get back in good standing.
Is the franchise tax the same as sales tax?
No. Sales tax is charged to your customers and sent to the Comptroller on its own schedule. The franchise tax is a yearly tax on the company itself, based on revenue. Many Katy businesses deal with both.
My company is a sole proprietorship. Do I file?
No. A sole proprietor is not subject to the Texas franchise tax. But a single-member LLC is, even though it may file like a sole proprietor on the federal side.