Does a Texas LLC pay franchise tax?

It files a yearly report. For 2026 reports, an LLC with revenue at or below $2,650,000 owes no tax and doesn't file a franchise tax report, but it still files a Public Information Report.

When is the Texas LLC annual report due?

May 15 each year. The first report is due May 15 of the year after the LLC became subject to the tax.

Does the No Tax Due Report still exist?

No. The Texas Comptroller discontinued it. LLCs under the threshold file only a Public Information Report or Ownership Information Report.

What is the late filing penalty?

A franchise tax report filed late carries a $50 penalty, even when no tax is due.

Does a sales tax permit cost money?

No, though a security bond may be required. Online applications take about 2–3 weeks; without an SSN, file paper form AP-201.

Does my LLC have to file BOI?

Not if it was formed in the U.S. According to FinCEN, since August 14, 2026 every company created in the U.S. is permanently exempt from BOI reporting.

What to Do After Forming a Texas LLC: Franchise Tax, Sales Tax, BOI and Taxes

Once your Texas LLC is formed, a few things recur every year and a few happen once:

Every year by May 15: file a Public Information Report (PIR) with the Texas Comptroller. If revenue is above $2.65 million (the threshold for 2026 reports), you also file a franchise tax report and pay tax.
If you sell taxable goods or services: get a sales and use tax permit, which is free and takes about 2–3 weeks.
BOI: no longer required for LLCs formed in the U.S., under a FinCEN final rule effective August 14, 2026.
Federal taxes: file according to how the IRS classifies your LLC.

Figures are from the Texas Comptroller, FinCEN and the IRS, checked October 19, 2026.

Key takeaways

File the Public Information Report by May 15 every year, starting the year after formation.

Franchise tax is owed only above $2.65 million in revenue (2026 reports).

A sales tax permit is free; U.S.-formed LLCs no longer file BOI.

1. Franchise tax and the Public Information Report (due May 15)

According to the Texas Comptroller and its April 2026 Tax Policy News:

Texas LLCs are subject to franchise tax. The annual report is due May 15; a weekend or holiday moves it to the next business day.
The first report is an annual report due May 15 of the year after the LLC became subject to the tax. Example: an LLC formed in 2026 files its first report by May 15, 2027.
The no-tax-due threshold for 2026 reports is $2,650,000 in revenue (it was $2,470,000 for 2024 and 2025 reports). A report covering less than 12 months uses annualized revenue.
Texas discontinued the No Tax Due Report. An LLC at or below the threshold doesn't file a franchise tax report but still files a Public Information Report (PIR) every year.
A late report carries a $50 penalty, even when no tax is due.

Most small LLCs (nail salons, restaurants, service businesses) are under the threshold, so the main yearly task is filing the PIR on time.

2. Sales and use tax permit (if you sell taxable items)

According to the Texas Comptroller:

A business selling taxable goods or services in Texas needs a sales and use tax permit.
There is no fee, though you may have to post a security bond.
Apply online through the Texas Online Tax Registration Application. If an owner, partner or officer has no SSN, the online application isn't available and you use paper form AP-201.
Allow 2–3 weeks to receive the permit.

Once you have it, you collect sales tax from customers and remit it on the schedule the state assigns.

3. BOI: no longer required

According to FinCEN, a final rule issued August 11, 2026 (effective August 14, 2026) permanently exempts every company created in the U.S. from BOI reporting, including updates to earlier reports. Only certain companies formed abroad and registered to do business in the U.S. must report. FinCEN also said it will delete BOI previously reported by U.S. persons.

If someone asks for money to "file BOI" for your LLC, check FinCEN's page first.

4. Federal taxes

According to the IRS:

Single-member LLC: by default, the company's income goes on the owner's personal return.
Multi-member LLC: taxed as a partnership by default, with its own return.
Elected corporate treatment (Form 8832): files a corporate return.
Single foreign owner: files a pro forma Form 1120 with Form 5472 every year; missing it can bring a $25,000 penalty (see Forming a U.S. LLC from Vietnam).

Employees add federal and state payroll taxes. Work with a tax preparer from the first year.

5. City, county and industry licenses

Some industries (nail salons, restaurants, construction, child care) need their own state or city licenses. Nail salons, for example, are licensed by the Texas Department of Licensing and Regulation. Ask the city where your location sits about business permits and zoning.

Suggested calendar

When	What
Right after forming	Get an EIN, open a bank account, get a sales tax permit if needed
On your assigned schedule (monthly, quarterly or yearly)	Remit sales tax collected
Every May 15 (starting the year after formation)	Public Information Report (plus franchise tax report if above the threshold)
Federal tax season	Return based on how the IRS classifies your LLC

No bank account yet? See Opening a Business Bank Account for Your LLC. Want customers to find you on Google? See Websites for Small Businesses.

Want reminders and paperwork handled?

Manna One Solution files Public Information Reports, applies for sales tax permits and prepares LLC tax returns, in English or Vietnamese, online across the U.S. We are not a law firm and do not give legal advice.

Sources

Texas Comptroller: Franchise Tax (checked October 19, 2026)
Texas Comptroller: Tax Policy News, April 2026 (checked October 19, 2026)
Texas Comptroller: Franchise Tax FAQs, Reports and Payments (checked October 19, 2026)
Texas Comptroller: Sales and Use Tax FAQs, Permits (checked October 19, 2026)
FinCEN: Beneficial Ownership Information Reporting (checked October 19, 2026)
IRS: Limited Liability Company (LLC) (checked October 19, 2026)