05-158 2025

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Besides the loss of your corporate privileges within the state of Texas, legal entities will also face fines, penalties, and interest for not paying Texas franchise tax. If you do not file your franchise tax report, you will face a $50 fine.
Learn more about TeleFile. Texas Franchise reports may be submitted electronically with approved tax preparation provider software. View approved software providers.
Who Must Pay the Franchise Tax? These entities must pay franchise tax if they do business in Texas and earn over $2.47 million in total revenue: Corporations. LLCs Series LLCs.
Each taxable entity formed as a corporation, limited liability company (LLC), limited partnership, professional association and financial institution that is organized in Texas or has nexus in Texas must file Form 05-102, Texas Franchise Tax Public Information Report (PIR) annually to satisfy their filing requirements.
Entities Not Subject to Franchise Tax The following entities do not file or pay franchise tax: sole proprietorships (except for single member LLCs); general partnerships when direct ownership is composed entirely of natural persons (except for limited liability partnerships);
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If your business earns more than $1,230,000 in revenue per year, you must pay a franchise tax to the Texas government. An experienced attorney can help calculate your rate and determine how much franchise tax you must pay.
If the tax due is less than $1,000, but annualized total revenue is greater than the no tax due threshold, a franchise tax report supporting that no tax is due (Form 05-158, Texas Franchise Tax Report, or Form 05-169, Texas Franchise Tax EZ Computation Report) must be filed.
Time-sensitive requests should be marked urgent and faxed to 512-475-0433.

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