Terminating Your Texas LLC

2 minute read
Lloyd & Mousilli always endeavors to educate our clients on their business strategies. With this objective in mind, we have prepared this brief overview of the termination process regarding Texas LLCs.

Background

There are a variety of circumstances that could lead yourbusiness towards the decision to terminate your Texas LLC. For the purposes ofthis article, we are referring to a voluntary termination.

Step 1: Ensure Franchise Tax Filings are up to date

In order for the required Certificate of Account Status (discussed below) to be issued, your business needs to have up to date franchise tax filings in the State of Texas. These include the Public Information Report, and the No Tax Due Report. If you are unsure whether your business is up to date on its franchise tax filings, please reach out to your Lloyd & Mousilli attorney to assist you. Once these tax filings have been verified, it is time to formally request your Certificate of Account Status.

Step 2: Formally Request a Certificate of AccountStatus

In order for a Certificate of Termination to be issued by the State Of Texas your business must attach a formal Certificate of Account Status to Terminate a Taxable Entity’s Existence in Texas. This form is referred to as 05-359 from the Texas Comptroller’s office. It is possible to make the formal request for a Certificate of Account Status by fax or regular mail, and generally has a relatively quick turnaround. 

Step 3: Filing the Certificate of Termination

Once a completed Certificate of Account Status has been verified through the Texas Comptroller’s office, it is ready to be attached to the Certificate of Termination. This document is known as the 651 from the Texas Secretary of State’s office. This can be filled out online. Once submitted online, the IRS estimates roughly a 48-hour processing time.

Talk to Your Lloyd & Mousilli Lawyer

If all of the tax reports are upto date, the process of termination is relatively painless. If you need helpfiling the appropriate paperwork or making sure you're following the law, reachout to your contact at Lloyd & Mousilli and we will make sure that yourbusiness fully and completely terminates existence under Texas law.

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