What are the penalties for late LLC filing in Texas?

Texas LLCs must file an annual Public Information Report (PIR) or Ownership Information Report (OIR) by May 15 with the Texas Comptroller. Late filing triggers a $50 penalty plus additional penalties: 5% if paid 1–30 days late, or 10% if paid over 30 days late. Interest accrues after 61 days. There is no grace period. Continued non-compliance results in involuntary dissolution.

Penalty Structure

The Texas Comptroller imposes a flat $50 penalty per late report under Texas Tax Code § 171.204. Beyond this base penalty, additional charges apply based on payment timing:

1–30 days late: 5% penalty on taxes owed
Over 30 days late: 10% penalty on taxes owed
After 61 days: Interest accrues on unpaid taxes

The annual report itself carries no filing fee, but penalties and interest compound quickly once May 15 passes.

Consequences of Non-Compliance

Ignoring late penalties escalates rapidly. The Texas Comptroller may declare your LLC tax-delinquent and forfeit its right to transact business. The Secretary of State then may involuntarily terminate your entity following tax forfeiture under Texas Business & Commerce Code § 11.101. This dissolution is automatic—you lose legal standing to conduct business in Texas.

Reinstatement Requirements

If your LLC is involuntarily dissolved, reinstatement requires:

Filing all delinquent reports
Paying all back taxes, penalties, and accrued interest
Obtaining a tax clearance certificate from the Comptroller
Filing a reinstatement application with the Secretary of State ($75 fee)

This multi-step process is costly and time-consuming.

Critical Points

File with the Comptroller, not the Secretary of State. Many business owners mistakenly file with the wrong agency, causing delays.

No grace period exists. Texas does not extend the May 15 deadline under any circumstances.

Act immediately if you miss the deadline. The longer you wait, the higher penalties and interest climb.

Contact the Texas Comptroller at (512) 463-5555 or file online at https://www.sos.state.tx.us/corp/sosda/index.shtml for current account status and payment arrangements.

This is general information, not legal advice.