Are your Franchise Taxes Current?

In addition to property taxes, the average consumer is subject to at least 12 different state, local and federal taxes. Texas Businesses and property owners that operate as corporations, partnerships, LLC are subject to these taxes as well as the Texas Franchise Tax. Staying current with filing requirements, deadlines and requirement payments can be very demanding for even the most diligent and well intended.
If you do not timely file your Texas Franchise Tax Return, you are not only subject to penalties, but are also at risk of losing the Secretary of State Good-Standing for your company. Maintaining your Good Standing is a primary condition for most lenders if you are looking to finance or borrow through your company. You can check on the status of your entity by searching https://ourcpa.cpa.state.tx.us/coa/Index.html. The good news is that if your good standing is lost as a result in the lapse of your Franchise Tax Filings it can be reinstated with a couple hours of work. Detailed below are the critical steps required to reinstate your Good Standing:
1) File your Delinquent Tax Return. This can be done online or with hard copy forms. Online access or forms can be obtained at http://www.window.state.tx.us/webfile/

2) Once you have filed your Franchise Tax Returns and they are approved, the Texas Comptroller’s Office will issue a Certificate of Tax Clearance.

3) The Certificate of Tax Clearance Letter, Form 801 (Request for Reinstatement) and a check for $75.00 is then submitted to the Secretary of State. These documents can either be sent to the Secretary of State or uploaded electronically by setting up a login at http://www.sos.state.tx.us/corp/sosda/index.shtml

4) Once received and approved, the Texas Secretary of State will issue a Certificate of Reinstatement.