The Comptroller of Public Accounts in Texas can certify that a company has paid all of its state taxes by issuing a tax certificate. In order to close a business or transfer ownership, the certificate is necessary. Additionally, it is necessary for some categories of government contracts.
You must still submit a yearly report and pay the annual franchise tax even if you don’t use your LLC in Texas. Your LLC might be administratively dissolved by the state if you don’t comply. As a result, your LLC will cease to be a valid legal company and you will no longer enjoy the benefits of being an LLC. How long does it take in Texas to dissolve an LLC?
You must submit a certificate of termination to the Texas Secretary of State in order to dissolve your LLC there. Usually, the procedure takes 4-6 weeks. Make sure that all of your taxes are paid in full and that you have a tax clearance certificate before you file the certificate of termination.
You could still be able to bring a lawsuit against your LLC in Texas even though it has been disbanded for some claims. To assess your alternatives, you should speak with an attorney as the procedure might be challenging.
Finally, obtaining your tax clearance certificate electronically in Texas is a crucial step in shutting your company or changing ownership. Before making any modifications to your firm, be sure all taxes have been paid and the required certificate has been obtained. Consult an attorney or a qualified public accountant if you have any questions or concerns.