1. Determine If You Need to File

Most Texas entities must file a franchise tax report, including:

• Corporations

• LLCs

• Partnerships

• Professional associations

2025 Revenue Threshold: If your annualized total revenue exceeds $2.47 million, you’re required to file.

🔍 Check your filing requirements

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2. Gather Required Information

Before you log in, have these details on hand:

• Taxpayer Number

• NAICS Code

• Total revenue for the report period

• Entity ownership information (officers, partners, members)

Find your NAICS code

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3. Choose the Correct Report Form

 1. EZ Computation Report (Form 05‑169)

• For businesses with revenue under $20 million and no compensation deduction.

 2. Long Form Report (Forms 05‑158‑A & 05‑158‑B)

• For larger businesses or if you’re claiming deductions.

Download franchise tax forms

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4. Complete Your Information Report

All filers must also submit one of these:

• Public Information Report (Form 05‑102) – Corporations & LLCs

• Ownership Information Report (Form 05‑167) – Partnerships & other entities

Learn about information reports

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5. File Online or By Mail

To File Online:

1. Go to eSystems

2. Log in with your Webfile credentials

3. Select “Franchise Tax Report”

4. Follow the prompts to upload or complete each form

To File by Mail​

Mail your completed forms and payment (if due) to:

​Texas Comptroller of Public Accounts  
P.O. Box 149348  
Austin, TX 78714‑934

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6. Request an Extension (If needed)

File Form 05‑164 by May 15, 2025

Or make your extension payment online via eSystems

Extension information

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⚠️ Don’t Forget

• Even if no tax is due, you must still file or face a $50 penalty.

• Late filings incur interest and additional collection fees.

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Received a Letter About Forfeited Rights? Here’s What It Means and How to Fix It

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If you’ve received a letter from the Texas Comptroller stating that your business has forfeited its right to transact business in Texas, it’s a serious matter. But it can be fixed.

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This status means your business is no longer in good standing with the state due to missed filings or unpaid franchise tax obligations. Ignoring it can lead to legal and financial issues, including the loss of liability protection.

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What "Forfeited" Means for Your Business

When the State of Texas forfeits your business’s right to operate:

• You lose the liability protection of your LLC or corporation

• You cannot legally conduct business in Texas

• You may be unable to renew permits, licenses, or open bank accounts

• You and other officers or directors may be personally liable for taxes and debts

• You lose the ability to enforce contracts in Texas courts

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Why Businesses Get Forfeiture Notices

Most commonly, businesses are forfeited because:

• A required Franchise Tax Report was not filed

• The Public Information Report or Ownership Information Report was missed

• A balance due on franchise taxes, penalties, or interest was never paid

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Even if you owe no tax, missing the annual filing still triggers forfeiture.

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How to Reinstate Your Business and Regain Good Standing

Here are the steps to bring your business back into compliance:

1. File All Past-Due Reports
   Log into your Texas Webfile account and submit any missing Franchise Tax Reports and informational filings.

2. Pay Any Outstanding Amounts
   This includes taxes, penalties, and interest. All balances must be paid in full.

3. Request a Tax Clearance Letter from the Texas Comptroller
   Once your account is up to date, request a Certificate of Account Status for Reinstatement. This document shows you are in good standing with the Comptroller and is required for reinstatement with the Secretary of State.
   You can request this online or by contacting the Comptroller’s office directly.

4. Submit Form 801 and the Certificate of Account Status to the Secretary of State
   Download and complete Form 801 – Application for Reinstatement. Attach the Certificate of Account Status and include the $75 filing fee. Submit everything to the Texas Secretary of State.

5. Wait for Approval
   Once processed, the Secretary of State will issue a Certificate of Reinstatement and your right to transact business in Texas will be restored.

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Can You Do This on Your Own?

Yes, but the process can feel overwhelming, especially if you’re not sure what’s missing or how to file past reports correctly. That’s where we come in.

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We Can Help You Fix It Fast

At KB2 Bookkeeping & Tax, we’ve helped many business owners respond to these notices and get back in good standing without the stress. Whether you’re catching up on filings or need help with the reinstatement paperwork, we’ve got your back.

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Frequently Asked Questions

 

Q: What if my business didn’t meet the revenue threshold this year?
A: You still need to file a No Tax Due report to avoid penalties.

Q: Can I file after May 15?
A: Yes, with an approved extension, but interest will accrue on any tax due.

Q: What does it mean if my business has "forfeited its right to transact business” in Texas?

​A: It means your business is no longer in good standing with the state due to a missed filing or unpaid franchise tax. You lose liability protection, can’t legally operate in Texas, and may be personally responsible for debts. But you can fix it by filing past reports, paying any balances, and applying for reinstatement.

Q: Can I still run my business if it’s been forfeited?
A: Technically, no. Once your entity is forfeited, you are not legally allowed to conduct business in Texas until your right to transact has been reinstated. Continuing to operate could result in personal liability and unenforceable contracts.

Q: How do I fix a forfeited business in Texas?
A: First, catch up on any missing Franchise Tax Reports and pay any outstanding tax, penalties, or interest. Then request a Certificate of Account Status from the Comptroller and submit Form 801 with that certificate to the Secretary of State. Once approved, your business will be reinstated.

​Q: How long does it take to reinstate my business after forfeiture?
A: It depends on how quickly you resolve your tax account with the Comptroller. Once your account is in good standing and you submit Form 801 and the Certificate of Account Status, the Secretary of State typically processes reinstatements within a few business days.

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Need More Help?

​If you hit a snag, shoot us an email at info@kb2bookkeeping.com or call 512-843-2320. Whether you need a little guidance or a full-service filing, we’ve got you covered.

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KB2 Bookkeeping & Tax
“We Take the ‘Ugh’ Out of Accounting”