taxes

Franchise Tax Account Status

Use our online search to find a taxpayer's Franchise Tax Account Status.

The "Franchise Tax Account Status," previously referred to as "Good Standing," provides the status of an entity's right to transact business in Texas. A franchise tax account status may be required to conduct real estate or financial transactions. The search results can be printed and reflect the Comptroller's records at the time the query is made.

The Comptroller is required by law to forfeit a company's right to transact business in Texas if the company has not met franchise tax filing requirements under Chapter 171. The law also requires the Comptroller to give at least 45 days, beginning after the notice of pending forfeiture is mailed, before the actual forfeiture. Any franchise tax deficiencies must be cured during that period to avoid the forfeiture of the right to transact business in Texas. If the right to transact business is forfeited, the entity will be denied the right to sue or defend itself in a Texas court and each director or officer will be liable for the debt of the entity. See Texas Tax Code Sections 171.255, Liability of Director and Officers, and 171.2515, Forfeiture of Right of Taxable Entity to Transact Business in this State.

Secretary of State Filings

The Franchise Tax Account Status is a summary designed to satisfy standard business needs. If you need to reinstate or terminate a business with the Texas Secretary of State, you must obtain a certificate specific to that purpose.

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