Missed Texas Franchise Tax Deadline — What to Do

The Texas Franchise Tax Report (and Public Information Report) is due May 15 every year. If you missed it, act quickly — the Texas Comptroller of Public Accounts can forfeit your LLC's right to transact business.

For formation basics, see our formation guide. For all guides, see our how-to overview.

What Happens When You Miss May 15

Immediately after May 15:

• Your LLC is not yet forfeited but is considered delinquent
• Penalties begin accruing (5% penalty if 1-30 days late; 10% if 31+ days late)
• Interest accrues at the statutory rate

After continued non-filing:

• The Comptroller sends notices to your registered agent and last known address
• If not resolved within approximately 120 days, the Comptroller forfeits your LLC
• "Forfeiture" means you lose the right to transact business in Texas
• Officers and managers become personally liable for entity debts incurred after forfeiture

How to Fix It

Step 1: File the Overdue Report

• Go to the Comptroller's WebFile system (comptroller.texas.gov)
• File your delinquent Franchise Tax Report AND Public Information Report
• If revenue was under $2.47M (2025), you likely owe no tax — but still must file

Step 2: Pay Penalties and Interest

• 5% penalty (1-30 days late)
• 10% penalty (31+ days late)
• Interest at statutory rate on any tax owed
• If no tax is owed (under threshold), penalty is minimal

Step 3: Request Reinstatement (If Forfeited)

If the Comptroller has already forfeited your LLC:

• Clear all delinquent tax filings with the Comptroller
• Pay all penalties and interest
• File for reinstatement with the Texas Secretary of State
• Reinstatement fee: $0 (no separate reinstatement fee in Texas — just clear delinquent filings and pay penalties)

Prevention

• Set a reminder for April 15 (one month before deadline)
• Use a professional registered agent service — we send franchise tax reminders
• File early — the filing window opens January 1 each year
• If revenue is under the no-tax-due threshold ($2.47M in 2025), you still must file the "No Tax Due" report

FAQ

Do I still owe franchise tax if my LLC had no revenue?

No tax is owed if revenue is below the no-tax-due threshold. However, you MUST still file the Franchise Tax Report and Public Information Report every year regardless of revenue.

Can the Comptroller close my bank account?

Not directly, but forfeiture means you cannot legally transact business. Banks may freeze accounts if they discover the forfeiture.

What is the difference between forfeiture and dissolution?

Forfeiture (by Comptroller) removes your right to do business. Administrative termination (by SOS for not filing) dissolves the entity entirely. Both require reinstatement to cure.

For more compliance information, see our how-to overview.