If your Texas LLC has been dormant for a long, you might need to reactivate it before starting up your firm. There are a few procedures involved, but they are all rather simple in the process of reactivating an inactive LLC. In this article, we’ll explain how to revive your LLC and go over the consequences of dissolution and revocation of dissolution.
Step 1: Verify the Status of Your LLC You should contact the Texas Secretary of State to confirm the status of your LLC before taking any further action. To do this, use the Texas Secretary of State’s Business Search Portal to look for your LLC. If the status of your LLC is “inactive,” you must take action to reactivate it.
You must submit a Certificate of Reinstatement to the Texas Secretary of State in order to revive your LLC. You can submit this form electronically or by mail. Information like the name of your LLC, its registration number, and the explanation for its inactivity must be provided.
Step 3: Pay the Essential Fees The Texas Secretary of State will need payment when you submit your Certificate of Reinstatement. The cost varies based on whether you file online or by mail and how long your LLC has been dormant. Additionally, you can be required to pay any unpaid franchise taxes or fees. The Consequences of Dissolution If your LLC has been dissolved, it no longer qualifies as a legal person in the eyes of the law. Failure to submit yearly reports, pay franchise taxes, or adhere to other state regulations may result in this. Assets are allocated to members and liabilities are settled when an LLC is dissolved. After dissolution, the LLC’s name cannot be used for commercial purposes. Dissolution and revocation
You must submit a request for dissolution revocation to the Texas Secretary of State if you want to reinstate a dissolved LLC. Your LLC will be reinstated by the submission of a Certificate of Revocation of Dissolution. The appropriate fees and any unpaid franchise taxes or fees must also be paid.
Activating an inactive LLC in Texas is a fairly easy process, but you must file the right documentation and pay the necessary costs. To reinstate your LLC after it has been dissolved, you must submit a request for dissolution revocation. To prevent future inactivity or dissolution, it’s critical to keep up with your LLC’s annual reports and franchise tax payments.
In Texas, an LLC may be terminated for a number of reasons, including failure to submit yearly reports, pay taxes, keep a registered agent, or adhere to state laws. In addition, a court may mandate the cancellation of an LLC due to legal concerns or conflicts, or LLC members may decide to dissolve the LLC freely.
Your LLC may be suspended in Texas for a number of different reasons. Failure to submit an annual report to the Texas Comptroller’s office is one frequent cause. Inaccurate or incomplete information on the formation paperwork, inability to retain a registered agent in the state of Texas, or failing to pay mandatory franchise taxes are some more potential causes.