A Limited Liability Company (LLC) forfeiture occurs when the company loses its ability to conduct business legally. This may occur for a number of reasons, including failing to submit yearly reports, failing to pay taxes, or failing to keep a registered agent. The limited liability protection provided by an LLC is effectively lost when it is forfeited, making the owners or members individually accountable for the debts and liabilities of the business.
If your business is listed as being dormant, the state has forfeited it. This may occur if you neglect to comply with certain legal obligations, such completing yearly reports or paying taxes. Due to its inactive status, the firm is unable to lawfully do business or sign any contracts until it is reactivated.
You must submit a reinstatement application to the Texas Secretary of State in order to restart your Texas LLC. All overdue reports and fees, as well as any fines or interest that may have accumulated during the forfeiture period, must be included in this application. Your LLC will be reactivated and you can start doing business again after your application is granted.
How Can I Reactivate a Dormant LLC in Texas? The same reinstatement procedure as for a forfeited LLC must be followed in Texas to reactivate an inactive LLC. This includes submitting an application for reinstatement and paying any outstanding fines or fees. Your LLC will recover its legal standing and limited liability protection after being revived.
What Steps Do I Need to Take in Texas to Restart My LLC? If your Texas LLC has been forfeited or become dormant, you must go through the reinstatement procedure to reactivate it. This entails submitting a reinstatement application, paying any fines or costs that are still owed, and restoring your LLC’s good standing with the state. You can begin running your business with the advantages and legal protections of a limited liability corporation after your LLC has been reinstated.