What is Texas Franchise Tax?
The Texas Franchise Tax is a privilege tax imposed on businesses operating in Texas.
Due Date: May 15 (or next business day if it falls on a weekend/holiday)
Who must file?
All taxable entities incorporated or doing business in Texas must file, including:
- Corporations (C and S)
- Limited Liability Companies (LLCs)
- Limited Partnerships (LPs)
- Limited Liability Partnerships (LLPs)
Common exemptions
No tax due
Entities with revenue ≤ $2.47M are not required to file a No Tax Due Report but must still file:
- Public Information Report (Form 05-102) OR
- Ownership Information Report (Form 05-167)
New veteran-owned businesses
These businesses are not required to file a No Tax Due Report.
Passive entities & REITs
- Must file the EZ Computation Report or the Long Form
- Not required to file Form 05-102 or Form 05-167
Which forms to file?
- EZ computation report: Revenue ≤ $20M
- Long form report: Revenue > $20M
- Public/Ownership info report: Most entities must file, even if they qualify for No Tax Due
- Final report: If terminating, converting, merging, or withdrawing entity’s registration, file a final report and settle any outstanding tax due within the same year
Penalties for late filing
- $50 late filing penalty: Charged for each report filed after the deadline
- Late payment penalty:
- 5% if paid within 1–30 days late
- 10% if paid over 30 days late
- Interest: Begins accruing on unpaid taxes starting 61 days after the due date
Is your business required to file the Texas Franchise Tax?
Don’t miss the May 15 deadline
Reach out to FinStackk to file the right forms and stay compliant.