Short answer: If your Texas LLC's annualized total revenue is $2.65 million or less, you owe no franchise tax and you no longer file a No Tax Due Report. $2.65 million is the threshold for 2026 and 2027 reports. You still file one thing every year: a Public Information Report (Form 05-102), due May 15.
That second part is where people get caught. "No tax due" sounds like "nothing to do," and for Texas LLCs it isn't.
What changed in 2024?
In July 2023 the Texas Legislature passed Senate Bill 3. It raised the No Tax Due threshold and ended the No Tax Due Report for reports originally due on or after January 1, 2024. The Comptroller discontinued the form (05-163) entirely.
The threshold has moved over time:
- 2022 and 2023 reports: $1,230,000
- 2024 and 2025 reports: $2,470,000
- 2026 and 2027 reports: $2,650,000
If your LLC is at or below the threshold, the Comptroller's own summary is three lines: you don't owe any tax, you don't file a No Tax Due Report, and you do file a Public Information Report or Ownership Information Report.
Which report does an LLC file?
LLCs file the Public Information Report (PIR), Form 05-102. Corporations, limited partnerships, professional associations and financial institutions file it too. Other entity types file the Ownership Information Report (Form 05-167) instead.
The PIR is short. It asks for:
- Your principal place of business and mailing address
- The people who run the company: names, titles and addresses of your managers, members or officers, as applicable
- Your registered agent
- A signature
It's public. The Comptroller forwards each PIR to the Texas Secretary of State, which uses it as the record of who manages Texas corporations and LLCs. LLCs don't file a separate annual report with the Secretary of State; per the Secretary of State, they "file annually with the Comptroller." The PIR is that annual filing.
One exception: a qualifying new veteran-owned business doesn't file a PIR during its first five years.
When is the first one due?
Every year by May 15, or the next business day if May 15 falls on a weekend or holiday.
Your first one comes the year after you form. The Comptroller's example is an LLC registered with the Secretary of State on December 20, 2023, which files its "first annual" report in 2024. So if you form your LLC in 2026, your first PIR is due May 15, 2027.
How does the threshold work in your first year?
Your first report may cover only part of a year, so the threshold test uses annualized total revenue. The Comptroller says annualized revenue is only used to decide whether you're under the threshold, not to calculate tax. If your side business brought in a few thousand dollars, you're nowhere near it.
What happens if you skip it?
The consequences, stated plainly:
- A $50 late-filing penalty. The Comptroller assesses $50 on each required franchise tax report filed after the due date, "regardless of whether any taxes or fees are due."
- Forfeiture of your right to transact business. If your account isn't current, the Comptroller mails a Notice of Intent to Forfeit. After forfeiture, your LLC generally can't sue or defend itself in a Texas court. Each officer, director, member or owner can also become liable for certain debts of the LLC. That removes part of the protection you formed the LLC to get.
- Forfeiture of your registration. If it goes further, the Secretary of State forfeits the LLC's registration. To reinstate, you file the missing reports and get a tax clearance letter.
The fix in every case starts the same way: file the missing PIRs. If you're under the threshold, the Comptroller's own notices say to "simply file" the report for each missing year.
So what should you do?
- Put May 15 on your calendar for the year after you form, and every year after that.
- Keep your 11-digit Texas taxpayer number handy. The Comptroller asks for it when you file or call.
- Check the details every year. The PIR is filed once a year, isn't updated in between, and becomes the public record of who manages your LLC.
- Don't pay anyone to file a "No Tax Due Report." That form no longer exists.
Your next step
Forming in Texas costs $300 to file the Certificate of Formation (Form 205), and nothing in franchise tax while you're under the threshold. Compare California, where a new LLC owes an $800 annual tax from its first year. Our Texas LLC guide walks through every filing with its official source and the date we last checked it. Or see your free roadmap, no account needed.
Sources: Texas Comptroller: Franchise Tax · No Tax Due Reporting for Report Year 2024 and Later · Requirements for Reporting and Paying Franchise Tax · Making Your Franchise Tax Account Current · Franchise Tax FAQ · Pub. 98-918, Late Filing Penalties · Form 05-102 (2026) · Texas SOS: Management and Ownership FAQs · Texas SOS: Formation FAQs · Texas SOS Form 205. This is general information, not legal or tax advice.