About Franchise Tax Filing
Texas has no state income tax — it has the franchise tax instead, and the Comptroller can forfeit your business's right to operate here if a report goes unfiled. Jacob Reyes Tax Services handles franchise tax filing for San Antonio businesses so that deadline never becomes a crisis.
Every entity registered with the Texas Secretary of State — LLC, corporation, or partnership — owes a franchise tax report each year, even if the actual tax due is zero. Whether your business clears the no-tax-due revenue threshold, needs a full margin computation, or is behind on a prior year, the filing gets matched to the right method and paired with the required Public or Ownership Information Report.
Fifteen years of preparing Texas returns, current CPA coursework at San Antonio College, and books kept clean year-round mean your numbers are ready before May rolls around — not reconstructed under deadline pressure.
Built for franchise tax filing
Texas franchise tax specifics
Margin computed under the cost-of-goods-sold, compensation, or 70%-of-revenue method — whichever produces the lower, correct tax — not a default guess.
Forfeiture prevention
Missed reports lead to Comptroller forfeiture and loss of good standing. Filings go in ahead of the deadline, with confirmation kept on file.
No-tax-due review, done right
Many small San Antonio businesses qualify for the no-tax-due report but file the wrong form or skip the required Public Information Report — that gets caught and corrected.
Bundled with your bookkeeping
Clients on a bookkeeping retainer arrive at franchise tax season with revenue and cost figures already reconciled, so filing takes days, not weeks.
Catch-up filings
Behind on one or more years? Prior reports get filed and reinstatement with the Secretary of State handled alongside the current one.
Signs you need franchise tax filing
- You're not sure whether your revenue clears the no-tax-due threshold this year
- You received a Comptroller notice about forfeited rights or non-compliance
- You formed an LLC or corporation last year and this is your first franchise tax report
- Your business has multiple related entities that may need combined reporting
- Your accountant retired or your bookkeeping fell behind and nobody is tracking the May 15 deadline
- You need a Public Information Report or Ownership Information Report filed alongside your return
The franchise tax filing process
- 01
Pull the numbers
Total revenue, cost of goods sold, and compensation figures gathered from your books — reconstructed first if records are incomplete.
- 02
Determine the method
Margin calculated under whichever of the three Comptroller-allowed methods results in the lowest correct tax for your entity.
- 03
File the report
Franchise tax report and the required Public or Ownership Information Report submitted through the Comptroller's Webfile system.
- 04
Confirm good standing
Comptroller record checked to confirm active status, with filing confirmation kept on file for your records.
What drives the cost
Entity structure and revenue method
A single-member LLC filing no-tax-due is a different job than a multi-entity group computing margin under the cost-of-goods-sold method — the calculation drives the work.
No Tax Due vs. full report
Entities under the annual revenue threshold file a shorter report. Entities above it need a full margin computation plus the Public or Ownership Information Report.
Condition of your books
Clean, reconciled books file fast. A year of unrecorded transactions has to be reconstructed before the report can even be started.
Combined groups and prior-year catch-up
Related entities that must report as a combined group, or one or more past-due years, both add time to the engagement.
Every franchise tax quote follows a short look at your entity type, revenue, and filing history — nothing quoted blind. Most single-entity no-tax-due filings are priced and completed well ahead of the May 15 deadline.
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Frequently asked questions about Franchise Tax Filing
Before you file
Frequently asked questions
It's Texas's substitute for a corporate income tax — an annual report and, for many entities, a tax on business margin. Every LLC, corporation, and most partnerships registered in Texas must file it, even in years no tax is owed.
You may owe zero dollars but still have to file. Businesses under the Comptroller's annual no-tax-due revenue threshold file a no-tax-due report and still submit the Public Information Report — skipping it is one of the most common compliance mistakes.
It depends on your entity structure, revenue method, and how current your books are — a no-tax-due filing for one clean entity costs far less than a multi-entity margin computation or a multi-year catch-up. A quote is given after a short review of your specifics, before any work begins.
Reports are due May 15 each year. Miss it and the Comptroller can forfeit your business's right to transact in Texas, which then requires a separate reinstatement process — the sooner a late or upcoming filing gets started, the cheaper and simpler it stays.
You lose the legal right to do business in Texas under that entity, which can affect contracts, banking, and lawsuits. Reinstatement requires filing all past-due reports and paying any fees before the Comptroller and Secretary of State restore good standing.
Texas grants new entities an initial filing period tied to their formation date, and your first report is typically due the following May 15. New entities are checked individually so the first report is neither filed too early nor missed.
Yes — nearly every Texas entity files one alongside its franchise tax report, listing officers, directors, or members. It's a separate requirement from the tax calculation itself and gets prepared as part of the same engagement.
Yes. Past-due reports get filed for each missed year, and once the Comptroller and Secretary of State records are current, reinstatement of good standing is handled as part of the same process.
Related services
Call Jacob Reyes Tax Services before your May 15 franchise tax deadline.
Get a flat quote in writing before any work begins — individual returns, business filings, bookkeeping and payroll.