The Texas LLC Year-End Checklist

Every Texas LLC has a short list of year-end tasks that set up a clean filing season: reconcile the books, close out payroll and send W-2s and 1099-NEC forms by January 31, file the fourth-quarter unemployment insurance report by January 31, wrap up any sales tax returns, confirm your registered agent, and gather the member details you'll need for the May 15 franchise tax report and Public Information Report. Handling them now prevents penalties and last-minute scrambles.

Disclaimer: This guide is for general informational purposes only and does not constitute legal or tax advice. Rules and dates change — always verify current requirements directly with the relevant agency before acting.

Why year-end matters for a Texas LLC

Texas has no state income tax, so year-end for a Texas LLC is less about a single deadline and more about closing your books cleanly and lining up the filings that come due early in the new year. Some obligations — like W-2s and the Q4 unemployment insurance report — are due January 31. Others, like the franchise tax report and Public Information Report (PIR), are due May 15 but are built entirely on your prior-year numbers.

Think of the checklist below in two buckets: things due within weeks of year-end, and things you prepare now so the May filing season is painless.

The Texas LLC year-end checklist

Step 1: Reconcile your books

Start by closing out your accounting for the year. Match every bank and credit-card transaction, categorize expenses, confirm outstanding invoices and bills, and produce a year-end profit-and-loss statement and balance sheet. This gives you the total revenue figure that drives your Texas franchise tax report, and the clean records your CPA needs for your federal return.

Common mistake: Waiting until April to reconcile a full year of transactions. Franchise tax is based on total revenue, and rushing your books in the spring is where errors creep in. Reconcile monthly, and Q4 becomes a quick review rather than a rebuild.

This is also the moment to confirm which workers were employees versus contractors, since that determines what forms you send in January. If you're unsure how a worker should be classified, consult a CPA or licensed Texas attorney.

Step 2: Close out payroll and send W-2s and 1099s

If your LLC has W-2 employees, run your final payroll for the year and reconcile total wages, then prepare each employee's W-2. If you paid any non-employee contractor $600 or more during the year, prepare a 1099-NEC for them.

Both W-2s (to employees) and 1099-NEC forms (to contractors) must generally be furnished to workers by January 31, and filed with the IRS and Social Security Administration by that same date. Because Texas has no state income tax, there is no state wage withholding to report — but the federal deadlines still apply.

Common mistake: Forgetting that you must also report new hires. Each new or rehired W-2 employee must be reported to the Texas Attorney General within 20 days of their start date — a year-round obligation that's easy to overlook when you hire near year-end. See our guide to Texas new hire reporting for the details.

Step 3: File the Q4 unemployment insurance report

Employers with W-2 employees pay Texas unemployment insurance (UI) tax to the Texas Workforce Commission. The quarterly wage report and UI tax payment (Form C-3) are due at the end of the month after each quarter — April 30, July 31, October 31, and January 31. The fourth-quarter report is therefore due January 31, right alongside your W-2 and 1099 deadlines.

New employers generally pay a UI tax rate of about 2.7%, which is later adjusted based on your experience rating. File and pay online at twc.texas.gov. For a fuller walkthrough of how UI tax works for a Texas LLC, see our Texas unemployment insurance tax guide.

Common mistake: Assuming "no state income tax" means "no state payroll filings." Texas has no income tax withholding, but the quarterly UI report is still mandatory for every employer with W-2 staff.

Step 4: Wrap up sales tax

If your LLC holds a Texas sales tax permit, make sure you've filed every return for the year. Sales tax returns are due the 20th of the month following the reporting period, and your filing frequency — monthly, quarterly, or annual — is assigned by the Comptroller.

Common mistake: Skipping a return because you had no taxable sales. Texas requires you to file a zero-dollar return for any period with no taxable sales — filing nothing is treated as a missed return, which carries a $50-per-return penalty. If your business slowed down in Q4, you still file.

Step 5: Confirm your registered agent

Your Texas LLC must maintain a registered agent with a physical Texas address at all times. Year-end is a good checkpoint: confirm the agent still accepts service, the address on file is current, and — if you use a commercial service — that your subscription hasn't lapsed. If anything has changed, update it with the Secretary of State using Form 401.

This matters for filing season too: the Comptroller mails your annual WebFile access information to your registered agent, so an out-of-date agent can mean a missed notice.

Step 6: Prepare for the May 15 franchise tax and PIR

The franchise tax report and PIR aren't due until May 15, but everything they need comes from your year-end close. Two tasks now save you time later:

1. Gather your revenue figures. For 2026, LLCs with annualized total revenue under $2,650,000 owe $0 in franchise tax but must still file. Knowing your number tells you whether you'll file only the PIR (Form 05-102) or also a computation form.
2. Review your member and manager information. The PIR lists your LLC's officers, directors, managers, or members and its registered agent and principal office. Confirm these details are accurate before you file — an incomplete or unsigned PIR can trigger forfeiture even if you owe no tax.

If you can't make the May 15 date, an extension request filed by May 15 moves the franchise report deadline to November 15 (an extension of time to file is not an extension of time to pay any tax owed). For the full annual picture, see our Texas LLC annual filing checklist for 2026 and our broader Texas LLC compliance checklist.

Common mistake: Treating "no tax due" as "nothing to file." The old No Tax Due Report was discontinued in 2024 — below-threshold LLCs now file the PIR, and skipping it can still lead to a $50 penalty and forfeiture.

Step 7: Review federal estimated taxes

A Texas LLC is a pass-through entity by default, so its income generally flows to the owners' personal federal returns. Owners who pay quarterly federal estimated taxes have a fourth-quarter estimate due in mid-January. Because estimated-tax math depends on your personal situation, work with a CPA rather than guessing — this guide can't give specific tax advice.

Quick reference

FAQ

What does a Texas LLC need to do at year-end?

At year-end a Texas LLC generally reconciles its books, closes out payroll, prepares W-2s and 1099-NEC forms for workers, files its fourth-quarter unemployment insurance report, files any remaining sales tax return, confirms its registered agent, and gathers member and manager details for the May franchise tax report and PIR. The exact tasks depend on whether you have employees and taxable sales.

When are W-2s and 1099-NEC forms due for a Texas LLC?

Employers must furnish W-2 forms to employees and 1099-NEC forms to non-employee contractors by January 31, and generally file the same forms with the IRS and Social Security Administration by that date. Missing the January 31 deadline can trigger federal penalties, so many Texas LLCs prepare these forms in December.

When is the Q4 Texas unemployment insurance report due?

The Texas Workforce Commission requires the quarterly wage report and UI tax payment (Form C-3) for the fourth quarter by January 31. The other quarters are due April 30, July 31, and October 31. Only employers with W-2 employees file these reports.

Does year-end affect the Texas franchise tax deadline?

The franchise tax report and Public Information Report are due May 15, not at year-end, but your prior calendar or fiscal year revenue is what those reports are based on. Reconciling your books at year-end makes the May 15 filing far easier and reduces the risk of errors.

What happens if I don't complete my year-end filings?

Missing the January 31 UI report can bring Texas Workforce Commission penalties and interest, and late W-2s or 1099s can trigger federal fines. Failing to later file the May 15 franchise tax report or PIR can lead to a $50 penalty and eventual forfeiture of your LLC's right to transact business in Texas. For nuanced situations, consult a CPA or licensed Texas attorney.

Not sure what else your Texas LLC owes?

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Last verified: 2026-08-04

Sources: Texas Comptroller — Franchise Tax | Texas Comptroller — PIR/OIR Filing Requirements | Texas Workforce Commission | Texas Attorney General — Employer New Hire Reporting | Texas Secretary of State