To keep your limited liability corporation (LLC) operating, you must abide by state regulations if you own it in Texas. If you don’t, your LLC could be forfeited and you could lose your legal protections. Don’t give up, though, if you find yourself in this predicament. By taking a few easy procedures, you can restore your forfeited LLC.
An annual franchise tax must be paid by LLCs in Texas to the state comptroller’s office. Your LLC will be deemed “franchise tax delinquent” if you don’t pay this tax for two years in a row. You have 90 days from the date you get a notice of delinquency to pay the tax or your LLC will be involuntarily terminated. You will lose your legal safeguards and your LLC will be dissolved once it is terminated unwillingly.
How Do I Dissolve a Texas LLC? The Secretary of State must receive a Certificate of Termination if you choose to dissolve your LLC in Texas. To prove that your LLC has no unpaid tax debts, you must obtain a Tax Clearance Certificate from the Texas Comptroller’s office. Before submitting the certificate of termination, you should also pay off all debts, obligations, and claims made against your LLC.
In Texas, if an LLC has been forfeited or involuntarily terminated, it is possible to restart it. You must submit an Application for Reinstatement to the Secretary of State together with all unpaid fines and taxes in order to achieve this. Additionally, you must submit any omitted franchise tax returns and settle any unpaid franchise taxes. How Do I Resurrect My LLC?
The same procedures for reinstatement or reactivation must be followed in Texas if you want to resurrect your LLC. You must submit the necessary paperwork, pay the associated costs and taxes, and submit any overdue franchise tax returns. However, you might need to file a Certificate of Formation and form a new LLC if your existing one has been terminated for longer than two years.
Finally, if your Texas LLC has been forfeited or involuntarily terminated, don’t freak out. By carrying out the above-mentioned actions, you can reinstate or reactivate it. To prevent this scenario from occurring in the first place, it’s crucial to uphold state laws. Make sure to file your annual reports, pay your franchise taxes on time, and keep correct records of your company’s operations.
You must go to the Texas Comptroller of Public Accounts website and submit a request using their eSystems interface in order to get a tax clearing certificate online in Texas. You must have a current account with the portal and supply details about your company, such as your tax ID number and the request’s justification. If you are in compliance with all tax responsibilities, the comptroller’s office will check your account once the request has been made and provide the certificate.