Form 205 LLC and Form 201 corporation each have a $300 state fee. S-Corp is an IRS Form 2553 tax election. Under $2,470,000 annualized total revenue: $0 Texas Franchise Tax under SB 3. Form 05-163 is eliminated for 2024+ report years. Form 05-102 PIR (LLCs, corporations, PLLCs) or Form 05-167 OIR (LPs/PAs) is still mandatory by May 15, starting the calendar year after formation. $50 late penalty; forfeiture and personal liability risks under Tex. Tax Code §§ 171.362, 171.251 and 171.252.
Official source: Texas ComptrollerOfficial source: Texas ComptrollerOfficial source: Texas ComptrollerTexas statutory edition · October 2026 · supplied 2026 rules; confirm current requirements with the relevant agency
Corp USA is not a law firm and does not provide legal advice. Private information and filing service; not a government agency.
- Established 1998 · 28+ Years in Business
- Form 205 / 201 · $300 SOS Fee
- $0 Franchise Tax Under $2.47M (SB 3)
- (667) 274-0865
Start with the right question.
Legal entity or tax election?
An LLC is a state-law structure; S-Corp status is an eligible federal Form 2553 election.
Official source: Internal Revenue ServiceTax savings or payroll duties?
Compare the expected federal benefit with payroll administration and reasonable compensation requirements.
Official source: Internal Revenue ServiceYour preparation checklist
- State LLC/corporation structure separated from IRS classification
- Form 205 or Form 201 $300 state fee compared
- Form 2553 shareholder eligibility reviewed
- Payroll and reasonable compensation discussed with tax adviser
- Texas report-year revenue threshold and information report tracked
Texas LLC vs. S-Corp Tax — decision path
Texas LLC vs. S-Corp Tax — decision path
$0 Texas Franchise Tax — SB 3 threshold
Mandatory Form 05-102 PIR: May 15 annually starting the calendar year after formation. $0 report state fee + optional $129 Corp USA service.
Form 05-163 is abolished for report years 2024+. Even with $0 tax, file PIR/OIR to avoid $50 late penalty (§ 171.362), forfeiture (§ 171.251) and personal liability for debts incurred during forfeiture (§ 171.252).
Estimate only; enter eligible deductions and Texas receipts. This does not determine retail eligibility, deduction limits, combined reporting or statutory exclusions.
Keep the requirements separate.
| Requirement | Verified detail / confirmation needed | Official authority |
|---|---|---|
| Texas LLC vs. S-Corp Tax | Form 205 LLC and Form 201 corporation each have a $300 state fee. S-Corp is an IRS Form 2553 tax election. Under $2,470,000 annualized total revenue: $0 Texas Franchise Tax under SB 3. Form 05-163 is eliminated for 2024+ report years. Form 05-102 PIR (LLCs, corporations, PLLCs) or Form 05-167 OIR (LPs/PAs) is still mandatory by May 15, starting the calendar year after formation. $50 late penalty; forfeiture and personal liability risks under Tex. Tax Code §§ 171.362, 171.251 and 171.252. | Official source: Texas Comptroller |
| Annual PIR / OIR | Under $2,470,000 annualized total revenue: $0 Texas Franchise Tax under SB 3. Form 05-163 is eliminated for 2024+ report years. Form 05-102 PIR (LLCs, corporations, PLLCs) or Form 05-167 OIR (LPs/PAs) is still mandatory by May 15, starting the calendar year after formation. $50 late penalty; forfeiture and personal liability risks under Tex. Tax Code §§ 171.362, 171.251 and 171.252. | Official source: Texas Comptroller |
| HB 9 BPP exemption | $125,000 exemption per taxing location from January 1, 2026; check rendition by April 15. | Official source: Texas Comptroller |
Carry the decision forward.
Corp USA is not a law firm and does not provide legal advice. State fees are pass-through. Service fees and taxes are separate. Review the order price before payment.
Before your next step
No. Form 205 or Form 201 establishes the entity; IRS Form 2553 makes an eligible S election.
Official source: Internal Revenue ServiceNo. Federal tax classification does not remove the applicable Texas information report.
Official source: Internal Revenue Service