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TEXAS CERTIFICATE OF GOOD STANDING OR STATUS
Texas ranked #3 in the list of best states for business by Forbes offers just the perfect business environment. It is ranked #3 in Business Costs and #3 in Economic Climate. If you are thinking of setting up a new business in the state then one of the most important documents to obtain is the Texas certificate of fact.
What is Texas Certificate of Fact of Good Standing?
Most businesses being incorporated or formed in the state of Texas require several different types of documentation depending on the business type. One such document is the Texas certificate of good standing, which has been changed by the comptroller’s office to “certificate of account status”. There is also a “certificate of fact” or business status issued by the Secretary of State. You are probably wondering what information this document contains or what the importance of such a document is.
The certificate issued by the Texas Comptroller of Public Accounts contains information regarding the franchise tax account status of a business entity and hence known as certificate of account status.
The certificate issued by the Texas Secretary of the State is considered as a official or legally binding evidence of a business entity’s existence or authority to transact business in the state. Hence, this is known as the Texas business status certificate.
It is important to know that a business entity depending on the type may require either certificates or both to become operational in the state of Texas.
How to get a Certificate of Fact in Texas?
A Texas certificate of fact is one of the most important documents that you will be required to submit in order to have a good standing status in the state. The question is how can you get the certificate and more importantly who will be issuing it? We have created a step by step approach keeping in mind, the requirements of different businesses.
1. Type of Business
What type of business are you planning to set up in the state of Texas? Will it be a limited liability company, a general partnership, a for-profit corporation or a limited partnership? Identifying the type of business is important as some businesses don’t require a Texas certificate of good standing.
2. Type of Status
It is important for businesses to maintain an active Texas business status so that they can enjoy the privileges of specific businesses in the state. A domestic or foreign LLC or for-profit corporation can be suspended or forfeited pursuant to Sec. 21.501 – 21.503 of the BOC, Title 2, Chapter 21 and LLC’s can be suspended pursuant to Sec. 101.552 – Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737), Sec. 102, eff. September 1, 2007. Foreign entities can be forfeited pursuant to Sec. 9.010, Sec. 9.104, and Sec. 9.106 of BOC, Title-1, Chapter 9. Once, a business is suspended they will have to clear their dues, penalties, franchise tax etc., and submit it along with a certificate of good standing or certificate of fact for reinstatement.
3. Information
You have to provide information specified by the Secretary of the State or Texas Business Organizations Code (BOC) in your order request for a Texas certificate of good standing. The following information needs to be provided by a business entity applying for the certificate of status or fact:
- Name of the business entity as filed in the Articles of Incorporation, Certificate of Formation, and Application for Registration
- Date of formation or registration of the business entity
- The business entity’s file number as assigned by the office of the secretary of state, unless it is a real estate investment trust
- The name of the Registered agent and their address
- The name and address of each of the governing persons in the business entity that is being registered
- Physical address of the business entity
- Confirmation of payment of all types of fees, franchise tax as well as penalties if any that was due to the secretary of state and Comptroller
4. Order Request
How and where can you get a Texas certificate of fact from? It is issued by the office of the Secretary of State as well as the comptroller and you can apply through the following ways:
- By Mail: You can request for certificate through mail. If you are applying for the certificate of existence then you will be required to mail to the Public Information Response Team, Corporations Section, P. O. Box 13697, Austin, Texas 78711-3697. If you are applying for proof of good standing from the Comptroller office then the mailing address would be State Comptroller’s Office, Account Correspondence and Maintenance, Capital Station, Austin, Texas 78774
- Email: You can email your application for Texas certificate of good standing to corpcert@sos.texas.gov. You will be required to provide information like your name, name of filing entity, and/or filing number, mailing address, telephone number and fax number, if you want to order documents through fax.
- In person: You can also deliver the application for good standing certificate by hand. You can submit your application at 1019 Brazos St., Austin, Texas 78701 from Monday through Friday between 8:00 a.m. and 5:00 p.m.
- Online: One of the fastest ways to receive a good Texas business status certificate is by applying Online. We at IncParadise, offer an online request or order option for businesses in the state so that it can be processed as early as possible.
Order your Copy of Texas Certificate of Fact Today!
Why do I need a Certificate of Fact in Texas?
Why should your company have an active Texas business status? Active status is important as it will ensure that a business entity formed in the state is able to access all the privileges offered by the state including business incentives, loans, and other financial instruments. The reasons you may require this certificate in Texas include:
A certificate of good standing is basically a Texas certificate of fact that highlights that a foreign or domestic limited liability company or corporation has:
- Submitted the franchise tax pursuant to Texas Tax Code, Section 171.255. Business entity needs to ensure it has been paid within the time as established by Texas Tax Code, Section 171.251 along with any delinquent tax and penalty.
- Has appointed and is maintaining a registered agent in the state pursuant to Business Organizations Code, Title 1- General Provisions, Chapter 5, Section 5.252-5.255 and Section 5.302-5.306.
- Have submitted the annual report or the Public Information Report (PIR) pursuant to Texas Tax Code – TAX § 171.203 with the State Comptroller office.
If a company loses the active Texas business status then it will not only lose its right to transact business in this state but will also be denied the right to sue or defend in a court of this state pursuant to Section 171.2515 of the Texas Tax Code. If a business entity forfeits the right to transact then this will have a negative impact on its existing clients, growth, financial transaction, and reputation. Hence, obtaining a certificate of good standing is crucial to the performance of a business.
A business entity will also require a Texas Certificate of Good Standing if they are planning a merger or acquisition, as it will be seen as a legal documentation of the entity.
How long does it take to get a certificate of good standing in Texas?
The Texas Secretary of State is responsible for issuing the Texas certificate of fact while the Texas Comptroller of Public Accounts is responsible towards issuing the certificate of good standing also known as the Tax Status Letter or Certificate of Account Status. The normal processing time can vary from 2-5 business days.
- You will have a personalized and secure business account
- You can view the Texas Certificate of Good Standing or Certificate of Fact Form. You will be able to fill the form, edit information, and save or submit along with the required fee.
- You can save time by submitting online without any extra fee
- You will be able to view the certificate and download it right from your personal account at IncParadise.