Compliance Guide — 2026

Texas LLC Filing Obligations Guide (2026)

Every deadline, form, penalty, and filing requirement for running a Texas LLC in 2026 — franchise tax, sales tax, PIR, employer obligations, and more. In plain English.

Updated: March 29, 2026 · Report Year 2026 · 20 min read
$2.65M
No-Tax-Due Threshold
May 15
Franchise Tax + PIR Due
6.60%
SaaS Effective Rate (8.25% area)
7.75%
Interest Rate (2026)
Disclaimer: This guide is a research summary for educational purposes — not legal or tax advice. Consult a qualified CPA or tax attorney before making compliance decisions.

2026 Filing Calendar — Quick Reference

Here's every Texas LLC filing deadline for 2026 at a glance. Bookmark this table and check it quarterly.

Date / What's Due / Filed With / Conditional? Date / What's Due / Filed With / Conditional?
Date What's Due Filed With Conditional?
Feb 1 – Apr 30 Workers' Comp DWC-005 notice TX Dept of Insurance Only if employees + no coverage
Apr 20 Sales Tax — Q1 return TX Comptroller (Webfile) Quarterly filers
Apr 30 TWC Wage Report — Q1 TX Workforce Commission Only if employees
May 15 Franchise Tax Report + PIR TX Comptroller (Webfile) All LLCs — mandatory
Jul 20 Sales Tax — Q2 return TX Comptroller (Webfile) Quarterly filers
Jul 31 TWC Wage Report — Q2 TX Workforce Commission Only if employees
Aug 15 Franchise Tax 1st Extension deadline TX Comptroller Only if extension filed
Oct 20 Sales Tax — Q3 return TX Comptroller (Webfile) Quarterly filers
Oct 31 TWC Wage Report — Q3 TX Workforce Commission Only if employees
Nov 15 Franchise Tax 2nd Extension deadline TX Comptroller Only if 2nd extension filed
Jan 20, 2027 Sales Tax — Q4 return TX Comptroller (Webfile) Quarterly filers
Jan 31, 2027 TWC Wage Report — Q4 TX Workforce Commission Only if employees
Key Numbers for 2026

No-tax-due threshold: $2.65M · EZ computation threshold: $20M · SaaS effective rate (8.25% area): 6.60% · Sales tax penalty: 5% → 10% → 20% · Interest rate: 7.75%

1. Texas Franchise Tax

What Is the Texas Franchise Tax?

Texas imposes a franchise tax (also called "margin tax") on all taxable entities doing business in the state. LLCs are taxable entities and must file annually with the Texas Comptroller of Public Accounts — even if they owe $0.

Key Thresholds (2026 Report Year)

Threshold / Amount / Effect Threshold / Amount / Effect
ThresholdAmountEffect
No-Tax-Due $2,650,000 Entities at or below this annualized total revenue owe $0 in franchise tax
EZ Computation $20,000,000 Entities at or below this can use simplified EZ Computation method
2026 Update

The no-tax-due threshold increased from $2.47M to $2.65M for the 2026 report year. Always verify the applicable threshold for the year you're filing.

Tax Rates

Method / Rate / Who Qualifies Method / Rate / Who Qualifies
MethodRateWho Qualifies
Standard — Retail/Wholesale 0.375% of taxable margin Entities primarily in retail or wholesale trade
Standard — Other 0.75% of taxable margin All other taxable entities (including most LLCs)
EZ Computation 0.331% of apportioned gross receipts Entities with ≤ $20M annualized total revenue

Filing Deadlines

Event / Date / Notes Event / Date / Notes
EventDateNotes
Annual Report Due May 15 If May 15 falls on a weekend/holiday, next business day
First Extension August 15 Must file Form 05-164 or pay via Webfile by May 15
Second Extension November 15 Must request by August 15
Final Reports 45 days after original due date For entities ceasing business

Extension Rules

To get an extension, you must pay by May 15 at least:

  • 90% of the tax that will be due with the current year's report, OR
  • 100% of the prior year's tax (only if the prior report was filed by May 14)
Don't Miss This

Extensions extend the time to file, NOT the time to pay. If your extension payment doesn't meet the 90%/100% threshold when the report is filed, penalties and interest apply retroactively from May 15.

Other extension rules:

  • File via Webfile (preferred) or submit Form 05-164 by mail
  • If paying online, do NOT also submit a paper Form 05-164
  • The 100% option is unavailable if the entity became subject to franchise tax for the first time in the prior year

Applicable Forms (2026)

Form / Name / When to Use Form / Name / When to Use
FormNameWhen to Use
05-102 Public Information Report (PIR) All LLCs — filed annually with franchise tax report
05-169 EZ Computation Report Revenue ≤ $20M, no credits/deductions claimed
05-158-A/B Franchise Tax Report (Long Form) Revenue > $20M or claiming deductions/credits
05-170 Payment Form Accompanying payment with report
05-164 Extension Request Requesting a filing extension
05-165 Extension Affiliate List Combined group extensions

No-Tax-Due Filing (2024+ Report Years)

Starting with the 2024 report year: Entities below the no-tax-due threshold are no longer required to file a No Tax Due Report. However, they must still file a Public Information Report (PIR) (Form 05-102) by May 15.

This means even if your LLC owes $0 in franchise tax, you must still file the PIR annually.

Penalties and Interest

Violation / Penalty Violation / Penalty
ViolationPenalty
Late filing (any report)$50 flat fee — even if no tax is due
Late payment (1–30 days past due)5% of unpaid tax
Late payment (31+ days past due)10% of unpaid tax
Interest on past due amountsBegins 61 days after due date; 7.75% for 2026 (prime + 1%)

Margin Calculation Methods

Entities above the no-tax-due threshold can choose whichever method produces the lowest tax:

  1. Total Revenue minus Cost of Goods Sold (COGS)
  2. Total Revenue minus Compensation
  3. Total Revenue × 70% (automatic 30% deduction)
  4. EZ Computation (0.331% × Texas apportioned gross receipts) — only if revenue ≤ $20M

Payment Methods

Tax Amount / Allowed Payment Methods Tax Amount / Allowed Payment Methods
Tax AmountAllowed Payment Methods
Less than $10,000EFT, credit card, TEXNET, check
$10,000 – $499,999EFT, credit card, TEXNET (no checks)
$500,000+TEXNET only (by 8 PM CT the business day before due date)

2. Texas Sales Tax

Overview

Texas imposes a state sales and use tax of 6.25%. Local jurisdictions (city, county, transit, special purpose districts) can add up to 2%, for a maximum combined rate of 8.25%. The tax is collected by permit holders and remitted to the Texas Comptroller.

SaaS / Data Processing Services — Special Rule

Texas classifies SaaS as a data processing service, which is taxable. However, Texas Tax Code § 151.351 provides a 20% exemption — only 80% of the charge is subject to sales tax.

Scenario / Calculation / Effective Tax Scenario / Calculation / Effective Tax
ScenarioCalculationEffective Tax
$1,000 SaaS (8.25% area) $1,000 × 80% = $800 × 8.25% $66.00 (6.60% effective)
$1,000 SaaS (7.25% area) $1,000 × 80% = $800 × 7.25% $58.00 (5.80% effective)
Multi-State Allocation

If your SaaS is used in multiple states, the taxable amount can be further reduced by allocating usage between Texas and non-Texas locations.

Filing Frequency

The Comptroller assigns a filing frequency after your sales tax permit is approved, based on your monthly tax liability:

Monthly Tax Liability / Frequency / Due Date Pattern Monthly Tax Liability / Frequency / Due Date Pattern
Monthly Tax LiabilityFrequencyDue Date Pattern
< $500/month (avg) Quarterly 20th of the month after quarter ends
≥ $500 in any month or ≥ $1,500 in 3 consecutive months Monthly 20th of the following month
< $1,000/year (clean history) Annual (by request) January 20 of the following year

2026 Quarterly Filing Due Dates

Quarter / Reporting Period / Due Date Quarter / Reporting Period / Due Date
QuarterReporting PeriodDue Date
Q1January – MarchApril 20, 2026
Q2April – JuneJuly 20, 2026
Q3July – SeptemberOctober 20, 2026
Q4October – DecemberJanuary 20, 2027

Timely Filing Discount

Texas rewards on-time filers with a discount on the tax owed:

Discount / Rate / Requirement Discount / Rate / Requirement
DiscountRateRequirement
Timely filing0.5% of tax dueFile and pay on or before the due date
Prepayment1.25% additionalPrepay a reasonable estimate by the prepayment deadline
Combined maximum1.75%Timely file + prepay

Prepayment deadlines: Monthly filers — 15th of each reporting month. Quarterly filers — 15th of the second month of each quarter. A "reasonable estimate" means at least 90% of the current period's tax or 100% of the same period's prior-year tax.

Penalties and Interest

Violation / Penalty Violation / Penalty
ViolationPenalty
Late filing (any return)$50 flat fee
Late payment (1–30 days)5% of unpaid tax
Late payment (31+ days)10% of unpaid tax
Interest on past-due amountsBegins 61 days after due date; 7.75% for 2026
After Comptroller noticeAdditional 10% (total can reach 20%)
Failure to file/pay (severe)Collection agency, tax liens, permit suspension, criminal charges
No Extensions for Sales Tax

Sales tax returns cannot be extended — unlike franchise tax. The only exception is if the Comptroller declares a disaster in your area.

Economic Nexus Threshold

If your business makes $500,000 or more in eligible sales into Texas within a calendar year, you establish economic nexus and must collect and remit Texas sales tax — even without physical presence in the state.

Filing Methods

  • Webfile (preferred): comptroller.texas.gov/taxes/file-pay
  • EDI (Electronic Data Interchange)
  • TeleFile (phone filing, for smaller filers)
  • Paper forms (only if tax paid < $50,000 in prior fiscal year)

3. Annual Public Information Report (PIR)

Overview

The Public Information Report (PIR) is filed as part of the franchise tax filing — it is not a separate filing to a different agency.

  • Form: 05-102
  • Due Date: May 15 (same as franchise tax)
  • Filed With: Texas Comptroller via Webfile or mail
  • Cost: Free

Required Information

  • Name, title, term expiration date, and address for each LLC manager/member
  • Name and address of registered agent and registered office
  • Principal office address
  • Mailing address
  • Address where entity records are maintained (must be within the U.S.)

Key Rules

  1. Must be filed even if no franchise tax is owed. Starting with the 2024 report year, the No Tax Due Report is eliminated, but the PIR is still mandatory.
  2. PIR information is public. Officer/member data from the PIR is displayed on the Comptroller's Taxable Entity Search tool.
  3. Must be signed by an authorized person (manager, member, or officer).

Consequences of Not Filing

Consequence / Detail Consequence / Detail
ConsequenceDetail
$50 late filing feeAssessed if not filed by May 15
Forfeiture of right to transact businessThe LLC loses its good-standing status in Texas
Denial of court accessThe LLC cannot sue or defend itself in Texas courts while forfeited
Personal liabilityEach member/manager becomes personally liable for certain debts of the LLC
ReinstatementFile the missing PIR + pay all penalties/fees + apply for reinstatement with the Comptroller

4. Other Recurring TX State Obligations

Registered Agent

  • Requirement: Every Texas LLC must continuously maintain a registered agent and registered office in Texas
  • Cost: Free if a member/manager serves as agent; $99–$300/year for a professional service
  • Updates: If your agent changes, file a change of registered agent form with the Texas Secretary of State (Form 401 or via SOSDirect)
  • No annual renewal: The agent remains on file until changed — Texas does not require renewal filings
  • Risk: If your registered agent resigns or becomes invalid, the SOS sends notice; failure to appoint a new one can lead to administrative forfeiture

Assumed Name Certificate (DBA)

  • If your LLC operates under any name other than its legal name, file an Assumed Name Certificate with the county clerk and the Texas Secretary of State
  • Duration: Valid for 10 years; must be renewed if still using the assumed name
  • Cost: ~$25 (SOS) + county clerk fees vary

Texas Workforce Commission (TWC) — Employer Obligations

Only If You Have Employees

TWC obligations only apply if your LLC has employees. Solo owner-operators with no employees can skip this section.

Obligation / Details Obligation / Details
ObligationDetails
Unemployment tax registration Register within 10 days of first employee via TWC online portal
Quarterly wage reports Due by the last day of the month following each quarter
UI tax rate New employers: 2.70% entry-level rate for 2026 on first $9,000 of each employee's wages
Member/officer wages Wages paid to officers/members are reportable to TWC, regardless of IRS entity election

2026 TWC Quarterly Due Dates

Quarter / Reporting Period / Wage Report & Payment Due Quarter / Reporting Period / Wage Report & Payment Due
QuarterReporting PeriodWage Report & Payment Due
Q1Jan – Mar 2026April 30, 2026
Q2Apr – Jun 2026July 31, 2026
Q3Jul – Sep 2026October 31, 2026
Q4Oct – Dec 2026January 31, 2027

Workers' Compensation Insurance

Texas is the only state where private employers are not required to carry workers' compensation insurance.

If your LLC does NOT carry coverage and has employees:

Obligation / Details Obligation / Details
ObligationDetails
Annual DWC-005 notice File with TX Department of Insurance between February 1 and April 30 each year
Workplace posting Post "Notice of No Coverage" in a prominent location visible to employees
New hire notification Provide written notice to each new employee during the hiring process
Government Contracts Exception

If your LLC holds any government contracts, workers' comp coverage is mandatory for employees assigned to that project.

Business Licenses & Permits

  • Sales Tax Permit: Free; must be obtained before collecting sales tax. No renewal — remains valid unless revoked or cancelled
  • City of El Paso: No general business license required, but certain activities need permits
  • Professional licenses: Renewed per the licensing agency's schedule, if applicable

Periodic Review Checklist

Item / Frequency / Action Item / Frequency / Action
ItemFrequencyAction
Registered agent current?As neededUpdate with SOS if changed
Operating agreement current?As neededInternal document — update for member/manager changes
Company information changed?As neededFile amendment with SOS ($150 fee)
BOI Report (federal)ExemptAs of March 2025, all U.S.-created entities are exempt from FinCEN BOI reporting
Workers' comp DWC-005Annually (Feb 1 – Apr 30)Only if employees + no workers' comp coverage
TWC quarterly wage reportQuarterlyOnly if employees — due last day of month after quarter end

5. Annual Filing Calendar Summary

A consolidated view of every obligation and deadline for a Texas LLC in 2026:

Deadline / Obligation / Form / Action / Filed With Deadline / Obligation / Form / Action / Filed With
DeadlineObligationForm / ActionFiled With
Feb 1 – Apr 30Workers' Comp DWC-005DWC-005 annual noticeTX Dept of Insurance
Apr 20Sales Tax Q1Webfile returnTX Comptroller
Apr 30TWC Wage Report Q1Quarterly report + paymentTX Workforce Commission
May 15Franchise Tax Report + PIR05-169 or 05-158 + 05-102TX Comptroller (Webfile)
May 15Extension Request (if needed)05-164 or Webfile paymentTX Comptroller
Jul 20Sales Tax Q2Webfile returnTX Comptroller
Jul 31TWC Wage Report Q2Quarterly report + paymentTX Workforce Commission
Aug 15First Extension DeadlineFile report or request 2nd extensionTX Comptroller
Oct 20Sales Tax Q3Webfile returnTX Comptroller
Oct 31TWC Wage Report Q3Quarterly report + paymentTX Workforce Commission
Nov 15Second Extension DeadlineFile reportTX Comptroller
Jan 20, 2027Sales Tax Q4Webfile returnTX Comptroller
Jan 31, 2027TWC Wage Report Q4Quarterly report + paymentTX Workforce Commission
As neededRegistered Agent changesForm 401 or SOSDirectTX Secretary of State

Frequently Asked Questions

  • The Texas franchise tax report and Public Information Report (PIR) are due May 15 each year. Extensions are available to August 15 (first) and November 15 (second), but you must pay at least 90% of the tax owed or 100% of the prior year's tax by May 15 to qualify.

  • Starting with the 2024 report year, LLCs below the no-tax-due threshold ($2.65M for 2026) no longer file a No Tax Due Report. However, you must still file the Public Information Report (PIR, Form 05-102) by May 15 every year. Missing the PIR can result in forfeiture of your LLC's good standing.

  • Yes. Texas classifies SaaS as a "data processing service," which is taxable. However, Tax Code § 151.351 provides a 20% exemption — only 80% of the charge is subject to sales tax. At the maximum combined rate of 8.25%, the effective tax rate on SaaS is 6.60%.

  • No. Texas is the only state where private employers are not required to carry workers' compensation insurance. However, if you have employees and do not carry coverage, you must file an annual DWC-005 notice with the Texas Department of Insurance between February 1 and April 30, post a workplace notice, and notify new hires in writing.

  • No. Sales tax returns cannot be extended, unlike franchise tax. The only exception is if the Texas Comptroller declares a disaster in your area. Always file and pay by the 20th of the month following the reporting period.

  • Failure to file the PIR can result in a $50 late fee, forfeiture of your LLC's right to transact business, denial of access to Texas courts, and personal liability for members/managers. To reinstate, file the missing PIR, pay all penalties, and apply for reinstatement with the Comptroller.

Sources

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