Filing a Franchise Tax Report is crucial for keeping your business in good standing in Texas. Missing the deadline can result in penalties, fees, and unnecessary complications, but the process doesn’t have to be overwhelming. 

This guide will walk you through who needs to file, which forms to use, and how to easily meet the deadline.

📌 New to franchise tax? Read this guide for a complete introduction: Franchise Tax 101: Understanding Your Obligations in Texas

What Is the Texas Franchise Tax & Who Needs to File in 2025?

The Texas Franchise Tax is a privilege tax imposed on businesses operating in Texas. Unlike a corporate income tax, this tax is based on a company’s gross revenue rather than net income.

The Texas Comptroller of Public Accounts administers franchise tax collection and requires most business entities to file a Franchise Tax Report annually, even if no tax is due.

Entities Required to File:

• Corporations

• Limited Liability Companies (LLCs)

• Limited Partnerships (LPs)

• Professional Associations

• Business Trusts

Entities Exempt from Filing:

• Sole Proprietorships (unless registered as an LLC)

• General Partnerships (unless they include a limited partner)

• Nonprofits & Certain Organizations with an approved exemption

📌 Check your exemption status here

📌 2025 Update: Businesses under $2.47 million in revenue must no longer file a No Tax Due Report (Form 05-163). Instead, they must submit a Public Information Report (PIR) or an Ownership Information Report (OIR).
🔗 More details: comptroller.texas.gov

Texas Franchise Tax Filing Deadline 2025: Key Dates

• Annual Franchise Tax Report Due Date: May 15, 2025

• Extension Deadline: Pay at least 90% of the tax owed by May 15 to avoid penalties

• Final Reports: Businesses closing or withdrawing from Texas must file within 60 days

Penalties for Late Filing:

• $50 penalty for any late report (even if no tax is due)

• 5% penalty on unpaid taxes (increases to 10% if over 30 days late)

• Interest charges accrue on overdue amounts

• Loss of good standing, which can prevent a business from legally operating in Texas

2025 Texas Franchise Tax Report Forms: Which One Do You Need?

Public Information Report (PIR) or Ownership Information Report (OIR)

Who Needs to File?

• Businesses with $2.47 million or less in revenue

Filing Requirements:

• Corporations, LLCs, LPs, and Professional Associations must submit Form 05-102 (Public Information Report - PIR)

• Other taxable entities must submit Form 05-167 (Ownership Information Report - OIR)

📌 Filing Instructions

EZ Computation Report (Form 05-169) – Simplified Filing Option

Who Uses It?

• Businesses with $20 million or less in total revenue

• Companies preferring a simpler tax calculation method (but without deductions)

📌 Form 05-169 (EZ Computation Report)

Long Form Franchise Tax Report (Forms 05-158-A & 05-158-B) – For Large Businesses

Who Needs to File?

• Businesses with over $20 million in revenue

• Businesses using deductions for cost of goods sold (COGS), compensation, or 30% of revenue

📌 Form 05-158-A & 05-158-B (Franchise Tax Report)

Texas Franchise Tax Payment Options: How & Where to Pay in 2025

✔️ Online Payment (Recommended)
✔️ Mail: Checks & money orders (processing may take longer)
✔️ ACH Transfer: Required for businesses owing $500,000+ in franchise tax

📌 Electronic filing is faster and lets you track your submission in real-time.

How Jupid Tax Can Help

Franchise tax compliance can be complex, but Jupid Tax makes it effortless. Our AI-powered accountant simplifies LLC formation, bookkeeping, and tax compliance through natural conversations—so you can focus on running your business, not paperwork.

✔️ Accurate calculations ensure you pay the correct amount
✔️ Automated filing means you never miss a deadline
✔️ A simple, AI-driven system handles everything in minutes

📌 File your Franchise Tax Report accurately and on time with Jupid Tax. Learn more here.

Final Takeaways

✔️ Deadline: May 15, 2025 – don’t be late
✔️ Forms: No Tax Due Report is eliminated – use PIR/OIR for small businesses
✔️ Filing: Online filing is required for businesses under the $2.47M threshold
✔️ Penalties: Late fees & loss of good standing for missed filings
✔️ Need Help? Jupid.tax can guide you through the process

📌 New to franchise tax? Read Franchise Tax 101: Understanding Your Obligations in Texas

References Used in This Article

Texas Comptroller – Franchise Tax Overview: https://comptroller.texas.gov/taxes/franchise/

Texas Comptroller – 2025 Forms & Filing Instructions: https://comptroller.texas.gov/taxes/franchise/forms/2025-franchise.php

Texas Comptroller – Payment Portal: https://comptroller.texas.gov/taxes/franchise/pay/