Texas Franchise Tax Not Filed: How to Reinstate Your Texas Business

If your Texas franchise tax was not filed, your business may already be marked as forfeited with the Texas Comptroller. Here is what that means and how to fix it before it gets worse.

If you received a notice that your Texas franchise tax was not filed, your business may already be at risk of forfeiture.

Many Texas business owners assume that if they owe no tax, they do not need to file anything. Unfortunately, that is not correct. 

Even if your business owes zero tax, the Texas Comptroller still requires annual franchise tax filings. Missing these filings is one of the most common reasons a Texas business becomes forfeited. 

The good news is that this can usually be fixed quickly. 

If your Texas franchise tax was not filed and you want help resolving it, click here and we can reinstate your Texas business.

1. Do You Have to File Texas Franchise Tax If You Owe Nothing

Yes. Texas requires most registered entities to file a franchise tax report every year, even if no tax is due. 

This includes: 

• LLCs 

• Corporations 

• Professional entities 

• Partnerships registered with the state 

Many businesses only need to file a No Tax Due Report, but it still must be submitted. 

If the report is not filed, the Comptroller marks your entity as non compliant. 

Eventually, the state issues a Notice of Forfeiture of Right to Transact Business.

2. What Happens When Texas Franchise Tax Is Not Filed

When your Texas franchise tax report is not filed, the state begins a compliance process. 

This typically follows this timeline: 

Step 1: Franchise tax report due May 15 

Step 2: Late notice sent 

Step 3: Penalties added 

Step 4: Second notice issued 

Step 5: Notice of Forfeiture of Right to Transact Business 

Step 6: Entity marked forfeited 

Step 7: Secretary of State forfeiture (if unresolved) 

Once forfeited, your business is no longer in good standing. 

3. Risks of Not Filing Texas Franchise Tax 

Failing to file your Texas franchise tax can cause serious issues. 

Your business may: 

• Lose right to transact business 

• Become forfeited 

• Be unable to sign contracts 

• Lose limited liability protection 

• Face personal liability 

• Be unable to sue in Texas 

• Have issues with vendors or banks 

• Be dissolved by the state 

Many business owners do not realize these risks until they receive the forfeiture notice. 

4. Common Reasons Texas Franchise Tax Was Not Filed

We see this happen frequently for reasons like: 

• Business owed zero tax and owner assumed no filing needed 

• CPA stopped filing without notice 

• Business address changed 

• Mail from Comptroller never received 

• New business missed first filing 

• Business inactive but still registered 

• Public Information Report overlooked 

Even inactive entities must still file!

5. How to Reinstate Your Texas Business After Missing Franchise Tax

To reinstate your Texas business, the missing filings must be completed. 

This usually includes: 

• Filing all missing franchise tax reports 

• Filing Public Information Reports 

• Paying penalties if applicable 

• Requesting reinstatement 

• Restoring good standing 

Once processed, your entity becomes active again. 

6. How Much Does It Cost to Fix

Cost depends on: 

• Number of missing years 

• Whether tax is owed 

• Penalties 

• Whether Secretary of State forfeiture occurred 

Many businesses only owe filing penalties. 

Some owe nothing at all. 

The only way to know is to review the entity. 

7. How Long Does It Take to Fix

Most reinstatements can be handled quickly once filings are completed. 

Some businesses are reinstated within days. 

Timing depends on: 

• Missing years 

• Filing complexity 

• Comptroller processing time 

The longer you wait, the more risk you take. 

8. We Can Reinstate Your Texas Business For You

If your Texas franchise tax was not filed, we can handle everything for you. 

We will: 

• Review your Texas entity 

• Identify missing filings 

• Prepare franchise tax reports 

• File Public Information Reports 

• Request reinstatement 

• Restore good standing 

Begin your Texas reinstatement today.

Or contact us and we will review your notice and tell you exactly what needs to be done.

Final Thoughts

Not filing your Texas franchise tax is one of the most common compliance issues for Texas businesses. The good news is that it is usually easy to fix. 

The key is acting quickly before forfeiture creates additional risk. 

Start your reinstatement now.