A Texas certificate of good standing (TX) is a legal document that verifies that your limited liability company (LLC) or corporation was correctly formed and is in good standing with the state.
This Certificate of Good Standing Texas guide will explain how to get a certificate of good standing in Texas and the requirements to get a good standing certificate.
What is a Certificate of Good Standing?
The certificate- of good standing, aka “certificate of existence,” confirms that a company is up-to-date with its filings and has no legal issues preventing it from conducting business.
This state document verifies that you have legally formed your LLC or corporation and that your company is properly maintained.
Requirements for Getting a Texas Certificate of Good Standing
In Texas, the certificate of good standing is known as a certificate of compliance issued by the Texas Secretary of State. To qualify for a Texas certificate of compliance, make sure your corporation or LLC is up-to-date with the following state compliance requirements.
Obtain Business Licenses & Permits
Follow federal, state, and local licensing guidelines to operate your business in Texas in a state-compliant manner. Some examples include health permits, building permits, medical and other professional licenses, etc.
To find more about state licensing requirements, visit the State of Texas website.
Pay State Taxes
Different businesses are subjected to different taxes such as Texas Unemployment Insurance (UI) tax, withholding tax, sales tax, etc. Depending on your business activity, you must register for various forms of Texas state tax.
All Texas LLCs and corporations also need to pay a franchise tax.
Timely Submit Annual Reports
All Texas corporations and LLCs must file an annual report that summarizes their business’s finances over the past year.
The Texas Comptroller of Public Accounts requires your business to submit an annual report by May 15 each year.
LLCs and corporations with annual revenue below $1,130,000 do not pay any tax. However, they must file a “No Tax Due” report. Businesses with annual revenue over $1,130,000 must pay a graduated tax calculated based on a complex formula.
How Do I Get a Certificate of Good Standing in Texas?
Once your business is up-to-date with all filings and compliance requirements, you can order your certificate of Good Standing from the state authority.
The Texas certificate of compliance is requested from the Texas Secretary of State. To order your certificate of compliance online from the Texas SOSDirect, click the following link.
You can also Order a Texas certificate of good standing by Mail, by Email, or by Phone. After reading the instructions, you can send your application to the following address.
Mailing Address:
Certifying Team
Secretary of State
P.O. Box 13697
Austin, TX 78711-3697Phone: (512) 463-5578
Email: [email protected]
The filing Cost for the Texas Certificate of Good Standing is $15.
Why Do I Need a Certificate of Good Standing in Texas?
While you don’t necessarily need a certificate of compliance to run your LLC or corporation in Texas, there are several instances where you may need to get one. These include:
- Opening a business bank account
- Applying for a business loan or line of credit from a bank
- Purchasing business insurance
- Trying to lease commercial space
- Soliciting funds from potential investors
- You want to register your LLC or other business in another state as a foreign or out-of-state LLC
- You want to Transfer or domesticate your business to another state
- You’re selling your business, and the buyer wants proof that the company is in good legal standing
- You are contracting with another company
- You need to show compliance with government regulations in any other situation
FAQs on Texas Certificate of Good Standing
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