My Texas LLC was involuntarily ended. What do I do to reinstate it?
You're on the Texas Comptroller's Website and you read the words, "FRANCHISE TAX INVOUNTARILY ENDED!!"
YIKES!!! What does this mean? Will I be sued? Is my business falling apart?
Step 1. Calm down.
If your Texas LLC has this status, yes, it does mean that something has occurred, but it can be fixed. Ultimately, your registration was ended because you have some type of tax forfeiture or administrative forfeiture. The most common reason for this is a failure to submit your annual franchise report and pay any related fees or taxes.
When your business status is terminated, you lose limited liability protection, the primary benefit of creating an entity like an LLC.
To reinstate your business you must satisfy all the state tax filing requirements. This usually entails the following steps.
1. File your annual franchise tax and Information Report forms.
2. Pay the taxes, penalties, and interests payments due.
3. Complete and submit the Tax Clearance Letter Request for Reinstatement (Form 05-391). It can be submitted online or by mail.
4. Submit these items to the Texas Secretary of State.
Note the filing due dates to avoid late penalties.
5. Turn in the Tax Clearance Letter (Form 05-377)that you receive from the Comptroller's office.
6. Turn in the Secretary of State Reinstatement forms, and pay the related filing fees.