Texas LLC Compliance Checklist: 7 Annual Obligations Every Owner Must Know
Texas LLCs have 7 compliance obligations — and missing even one can mean penalties, forfeiture, or personal liability for the owner. Some apply to every LLC from day one. Others only kick in when you hire employees, sell taxable goods, or use a business name different from your legal LLC name. This checklist walks through all 7 so nothing falls through the cracks.
The 7 Texas LLC compliance obligations
Obligation 1: Franchise Tax Report
Who it applies to: Every Texas LLC, no exceptions.
Deadline: May 15 annually.
What it is: An annual report filed with the Texas Comptroller. Despite the name "franchise tax," most small LLCs owe $0 — the 2026 no-tax-due threshold is $2,650,000 in annualized total revenue. But you must still file the report even if you owe nothing.
Forms: EZ Computation (05-169) for revenue under $20M; Long Form (05-158-A/B) for revenue over $20M.
Penalty for missing it: $50 late-filing fee, plus 5% of any tax owed if 1–30 days late or 10% if more than 30 days late. Continued non-compliance leads to forfeiture of your LLC's right to do business in Texas.
How to file: Online at comptroller.texas.gov via WebFile, or by mail.
Common mistake: Assuming "I don't owe any tax, so I don't need to file." Wrong — the filing is required regardless.
See the full guide: Texas LLC Franchise Tax Filing
Obligation 2: Public Information Report (PIR)
Who it applies to: Every Texas LLC.
Deadline: May 15 annually (filed at the same time as the franchise tax report).
What it is: Form 05-102 lists your LLC's members and managers. It's submitted to the Comptroller and forwarded to the Secretary of State. It's free to file.
Penalty for missing it: Forfeiture of LLC privileges. Worse: under Texas Tax Code §§ 171.251–171.255, officers and managers can become personally liable for the LLC's debts if the PIR is not filed or is filed incomplete.
Common mistake: Paying the franchise tax but skipping the PIR — a complete, signed PIR must be filed or you can still face forfeiture even with all taxes paid.
See the full guide: Texas Public Information Report for LLCs
Obligation 3: Registered Agent Maintenance
Who it applies to: Every Texas LLC.
Deadline: Ongoing — must be maintained at all times.
What it is: Texas law requires every LLC to have a registered agent — a person or company with a physical Texas address who can receive legal documents on your behalf. This is not a one-time filing; the requirement is continuous.
How to update: If your registered agent changes, file Form 401 (Statement of Change of Registered Agent/Office) with the Secretary of State at sos.state.tx.us.
Penalty for lapsing: You risk missing lawsuit service, legal notices, and government correspondence. The SOS may forfeit your entity if it can't reach your registered agent.
Cost: Free if you serve as your own registered agent (you must have a physical Texas address). Registered agent services typically charge $50–$300 per year.
See the full guide: Texas Registered Agent Requirements for LLCs
Obligation 4: Sales Tax Permit & Returns (conditional)
Who it applies to: LLCs that sell taxable goods or services in Texas.
Deadline: 20th of the month following each reporting period. Frequency (monthly, quarterly, or annual) is assigned by the Comptroller based on your expected sales volume.
What it is: If you sell tangible goods or certain taxable services in Texas, you must obtain a free Sales Tax Permit before your first taxable sale and then file returns on your assigned schedule. The Texas state rate is 6.25%; local jurisdictions can add up to 2% for a maximum of 8.25%.
Penalty for missing it: $50 per late return, plus 5%/10% penalty on tax owed.
Key nuances:
- Must file zero-dollar returns in periods with no taxable sales — you can't just skip.
- Digital goods are not taxable in Texas.
- Groceries and prescription drugs are exempt.
How to apply: comptroller.texas.gov/taxes/permit/
See the full guide: Texas LLC Sales Tax Permit
Obligation 5: Unemployment Insurance (UI) Tax (conditional)
Who it applies to: Texas LLCs with W-2 employees.
Deadline: Quarterly — April 30, July 31, October 31, January 31.
What it is: Texas employers must register with the Texas Workforce Commission (TWC) and file a quarterly wage report (Form C-3) along with UI tax payment. New employer rate is typically 2.7%.
Important note: Texas has no state income tax, so you do not withhold state income tax from employees. But UI tax is the employer's responsibility and is separate.
Penalty for missing it: Penalties and interest on late payments; TWC assessments can lead to tax liens and personal liability for responsible persons.
How to register: twc.texas.gov — register as soon as you hire your first employee.
See the full guide: Texas Unemployment Insurance Tax for LLCs
Obligation 6: New Hire Reporting (conditional)
Who it applies to: Texas LLCs with W-2 employees.
Deadline: Within 20 days of each new hire or rehire.
What it is: Federal and Texas law require employers to report every new employee and rehire to the Texas Attorney General's Office. The information is used for child support enforcement.
Penalty for missing it: $25 per late report; $500 for conspiring to not report.
How to file: Online at the Texas AG employer portal.
See the full guide: Texas New Hire Reporting Requirements for LLCs
Obligation 7: Assumed Name Certificate (DBA) (conditional)
Who it applies to: LLCs doing business under any name other than their legal registered name.
Deadline: Before you start doing business under the assumed name.
What it is: If your LLC operates as "Austin Coffee Roasters" but your legal name is "Smith Holdings LLC," you must file an Assumed Name Certificate (Form 503). This must be filed with both the Secretary of State and the county clerk in the county where your principal office is located. It's valid for 10 years.
Cost: $25 at the SOS, plus your county's filing fee.
Penalty for missing it: You cannot enforce contracts made under the assumed name, and you cannot sue under that name.
Common mistake: Filing only with the SOS or only with the county clerk — both filings are required.
How to file: sos.texas.gov/corp/namefilingsfaqs.shtml
See the full guide: Texas DBA Assumed Name Certificate
Key dates calendar
| Date | Obligation |
|---|---|
| January 20 | Q4 sales tax return due (quarterly filers) |
| January 31 | Q4 UI wage report due |
| April 20 | Q1 sales tax return due (quarterly filers) |
| April 30 | Q1 UI wage report due |
| May 15 | Franchise Tax Report + PIR due |
| July 20 | Q2 sales tax return due (quarterly filers) |
| July 31 | Q2 UI wage report due |
| October 20 | Q3 sales tax return due (quarterly filers) |
| October 31 | Q3 UI wage report due |
| 20th each month | Monthly sales tax return due (monthly filers) |
| Ongoing | Registered agent must be active at all times |
| Within 20 days | New hire report for each new employee |
Quick Reference
| Obligation | Who | Conditional? | Deadline |
|---|---|---|---|
| Franchise Tax Report | All LLCs | No | May 15 |
| Public Information Report (PIR) | All LLCs | No | May 15 |
| Registered Agent | All LLCs | No | Ongoing |
| Sales Tax Returns | LLCs selling taxable goods/services | Yes | 20th of month after period |
| UI Tax | LLCs with employees | Yes | Quarterly |
| New Hire Reporting | LLCs with employees | Yes | Within 20 days of hire |
| DBA Certificate | LLCs using a trade name | Yes | Before using name |
Frequently asked questions
What happens if I miss a compliance deadline?
It depends on which obligation you miss. The franchise tax report triggers a $50 penalty immediately, plus percentage penalties on any tax owed, and eventually forfeiture of your LLC. The PIR can trigger forfeiture and personal liability for members and managers. Sales tax and UI tax late filings carry their own $50 fees and percentage penalties. Some consequences compound over time — the longer you wait, the worse it gets.
Does a Texas LLC have to file annual reports?
Texas does not use the term "annual report" — instead, you file a Franchise Tax Report and a Public Information Report (PIR) together each May 15. These serve the same function as annual reports in other states. Both are required every year for every LLC.
Do I have to file anything if my LLC has no employees and no revenue?
Yes. The Franchise Tax Report and PIR are required for every Texas LLC regardless of revenue or whether you have employees. The conditional obligations (sales tax, UI tax, new hire reporting, DBA) only apply if the triggering condition exists for your business.
What is the penalty for not maintaining a registered agent?
Texas does not directly fine you for lapsing on a registered agent — but the consequences are serious. You can miss legal notices and lawsuit service, which can result in default judgments against you. The Secretary of State can also initiate forfeiture of your LLC if it can't reach your registered agent.
How do I know which compliance obligations apply to my LLC?
It depends on your business activities. All Texas LLCs must handle the franchise tax report, PIR, and registered agent. Sales tax applies if you sell taxable goods or services. UI tax and new hire reporting apply if you have W-2 employees. DBA applies if you do business under a name different from your legal LLC name. Use Ortholo's free compliance checker below to get a personalized list.
Not sure what else your Texas LLC owes?
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Check my obligations — free →Last verified: 2026-04-27
Sources: Texas Comptroller — Franchise Tax · PIR/OIR Requirements · Texas SOS · TWC Unemployment Tax · Texas AG New Hire · Sales Tax Permit · Assumed Name Certificate