Para qué sirve el formulario
Form 05-158, the Texas Franchise Tax Report (Long Form), is the standard tax document that businesses use to report and pay the state's franchise tax. Think of franchise tax not as a tax on your products or services, but rather as a privilege tax—the cost of doing business in Texas. Every corporation, LLC, partnership, professional association, and most other business entities formed in Texas or operating here must address this tax annually.
The Long Form comes in two parts (05-158-A and 05-158-B) and allows you to calculate your tax based on your business's "margin"—essentially your revenue minus certain allowable deductions. Unlike the simpler EZ Computation form, the Long Form lets you choose from several calculation methods to minimize your tax burden, including deductions for cost of goods sold or compensation paid to employees.
According to the Texas Comptroller, beginning in 2024, entities with annualized total revenue at or below $2,470,000 (the "no tax due threshold") don't need to file this tax report at all, though they still must file an information report about their business structure.
Cuándo se utiliza
Regular Annual Filing
Most businesses file Form 05-158 by May 15 each year. The report covers your previous accounting year—specifically, your last federal accounting period that ended in the calendar year before the report is due. For example, if your fiscal year ends on September 30, 2024, your 2025 franchise tax report (due May 15, 2025) would cover that period.
Late Filing
If you miss the May 15 deadline, you still must file the report, but you'll face penalties. Texas assesses a $50 penalty simply for filing late—even if you don't owe any tax. If you do owe tax, additional penalties apply: 5 percent if you pay 1–30 days late, or 10 percent if you pay more than 30 days late. Interest begins accruing 61 days after the due date.
Declaraciones rectificativas
You would file an amended Form 05-158 to correct errors in a previously filed report, claim a refund for overpaid taxes, change your calculation method, or elect to use different deductions. Write "AMENDED REFUND" at the top if your changes result in an overpayment. You can even amend from the simpler EZ Computation form to the Long Form if you realize the deductions would save you money.
Key Rules or Details for 2012
Quién debe presentar la declaración
Corporations, LLCs (including single-member LLCs), partnerships, professional associations, banks, trusts used for business purposes, and other legal entities formed in Texas or doing business here must file. Sole proprietorships and general partnerships where all partners are individuals typically don't pay franchise tax.
Calculation Methods
You calculate your "margin" by starting with total revenue, then subtracting one of these options:
- 70 percent of revenue
- Cost of goods sold
- Compensation paid to employees (capped at $450,000 per person for 2024–2025 reports)
- $1 million
After calculating margin, you multiply by your apportionment factor and apply the tax rate:
- Retail/wholesale: 0.375 percent
- Other businesses: 0.75 percent
The $1,000 Rule
If your calculated tax comes out to less than $1,000, you file the report but don’t actually pay anything.
Information Reports Required
- Formulario 05-102 (Informe de información pública)
- Formulario 05-167 (Informe sobre la titularidad)
Payment Methods
Payment depends on prior-year tax:
- $500,000+: TEXNET required
- Smaller amounts: Webfile, software, TEXNET, or check
Paso a paso (visión general)
Step 1 – Gather Your Financial Records
Collect federal tax data and documentation for deductions.
Step 2 – Determine Your Total Revenue
Add revenue and subtract statutory exclusions.
Step 3 – Calculate Your Margin Four Ways
Compare all methods and choose the lowest result.
Step 4 – Apportion to Texas
Calculate Texas percentage and apply to margin.
Step 5 – Apply the Tax Rate and Calculate Credits
Apply rate and subtract credits (Form 05-160 if needed).
Step 6 – Complete the Information Report
Fill out Form 05-102 or 05-167.
Step 7 – File and Pay
Submit electronically or by mail with payment if required.
Errores comunes y cómo evitarlos
Filing Only One Page of the Two-Page Form
Form includes 05-158-A and 05-158-B—submit both.
Claiming Credits Without Supporting Schedules
Must include Form 05-160 and related documents.
Wrong Information Report for Your Entity Type
Match entity to correct report form.
Forgetting to Annualize Short-Period Revenue
Adjust revenue to 12-month equivalent.
Missing the Registered Agent Requirement
Must list a valid Texas registered agent.
Exceeding the Per-Person Compensation Cap
Limit is $450,000 per individual.
Not Filing After Business Closure
Must file final report and request clearance certificate.
¿Qué ocurre después de presentar la solicitud?
Immediate Processing
Filed returns are processed upon receipt.
Account Status Updates
Status reflects compliance and public standing.
Payment Application
Payments are applied and reconciled.
Notice of Deficiencies
Errors or missing data trigger notices.
Refund Processing
Amended returns reviewed; audits possible.
Potential Audit Selection
May require supporting documentation review.
Certificate Issuance
Issued for business closure compliance.
Continued Compliance Monitoring
Annual filing obligations continue.
Preguntas frecuentes
Do I have to file even if my business made no money this year?
Generally yes, unless below the no-tax-due threshold. You may still need to file an information report.
Can I get an extension to file beyond May 15?
Yes, but payment is still due by May 15 to avoid penalties.
What if my company is part of a larger corporate group?
You may need to file a combined group report with an affiliate schedule.
My business operates in multiple states—do I report all my revenue to Texas?
No, only the apportioned Texas portion is taxed.
What’s the difference between the Long Form and the EZ Computation?
The Long Form allows deductions; EZ is simpler but less flexible.
How long do I have to keep records after filing?
At least four years is recommended.
What happens if I never file and just hope they don’t notice?
You risk penalties, forfeiture, legal limitations, and reinstatement costs.
For more information, visit the Texas Comptroller's Franchise Tax webpage or call 800-252-1381.
