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The Texas Franchise Tax Deadline: What Every Business Owner Needs to Know

If your business is registered in the state of Texas, the annual franchise tax filing isn’t optional—it’s required. Missing this deadline can result in late fees, interest charges, and even forfeiture of your business’s right to operate in Texas. Whether you're a first-time filer or managing multiple entities, staying informed about the Texas franchise tax is critical to keeping your business compliant.


business owner presentation

What Is the Texas Franchise Tax?

The Texas franchise tax is a privilege tax imposed on businesses operating in Texas. Despite the name, it applies to more than just franchised businesses. Most entities—LLCs, corporations, partnerships, and even some nonprofit organizations—are required to file annually, even if they owe nothing.


When Is the Texas Franchise Tax Due?

The Texas franchise tax report and public information report (PIR) are due annually on May 15. If the due date falls on a weekend or holiday, the deadline moves to the next business day.

Upcoming Deadline: May 15, 2025

Missing the deadline can result in:

  • Automatic late penalties (5% after 30 days, 10% after 60 days)

  • Interest charges on any taxes due

  • Forfeiture of the business's right to transact in Texas


Who Has to File the Franchise Tax?

Most business entities that operate in Texas must file, including:

  • Corporations (C Corps, S Corps)

  • Limited Liability Companies (LLCs)

  • Limited Partnerships (LPs)

  • Professional Associations

  • Business Trusts


Even if your business is not subject to paying the tax (because it falls below the $2.47 million revenue threshold for 2025), you still must file a No Tax Due Report along with your public information report.

Confused about whether you need to file? Contact The RedHead Solutions and we’ll help you sort it out.

What Needs to Be Filed?

Here’s what you typically need to submit:

  1. Franchise Tax Report

    • Either a No Tax Due Report, EZ Computation Report, or Long Form Report—depending on your revenue and deductions.

  2. Public Information Report (PIR)

    • Lists ownership and management info. Required for most entities except sole proprietors.


How to File the Franchise Tax

You can file online using the Texas Comptroller's Webfile System, by mail, or through a tax professional.

If your business:

  • Has total revenue under $2.47 million → File a No Tax Due Report.

  • Has revenue above that threshold → You must calculate tax using either the EZ Computation or standard method.


Penalties for Not Filing

Failing to file your Texas Franchise Tax report by the May 15 deadline can lead to serious consequences for your business. The state imposes automatic late penalties—5% of the tax due if the report is filed up to 30 days late, and 10% if it’s more than 30 days late. Even if you owe no tax, missing the filing requirement can still result in your business losing its good standing with the state. This can lead to forfeiture of your right to conduct business in Texas, prevent you from renewing licenses or permits, and even open the door to personal liability for business owners and officers. Additionally, forfeited entities lose the ability to defend themselves in Texas courts, which can be devastating if your business faces legal action. Staying compliant isn’t just about avoiding fees—it’s about protecting your right to operate.


Let The RedHead Solutions Handle It

Filing your Texas Franchise Tax doesn’t have to be stressful or time-consuming. At The RedHead Solutions, we specialize in compliance for Texas-based businesses. Our services include:

  • Preparing and filing your franchise tax reports

  • Submitting your Public Information Report

  • Ensuring all filings are completed on time to avoid penalties

We’ll keep your business compliant so you can stay focused on growth.

Conclusion

The Texas Franchise Tax deadline is a key date that every business owner should have marked on their calendar. By understanding what’s required and filing on time, you avoid penalties and keep your business in good standing. If you’re unsure where to start or simply want to save time, reach out to The RedHead Solutions and let us take care of the details for you.

 
 
 
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