Question 1

Do I need to hire a service to reinstate or dissolve my Texas entity?

Accepted Answer

While forms are public, the process requires precise synchronization between the Texas Comptroller and the Secretary of State. Whether you are reinstating to active status or filing a Distributee Affidavit to recover assets, Attribiz navigates the timing gap to prevent rejections and liability leaks.

Question 2

How do I recover assets from a dissolved/forfeited Texas entity?

Accepted Answer

Assets held in the Texas Comptroller's Suspense Account for dissolved entities require a specific 'Distributee' filing. You do not always need to fully reinstate the entity. We perform a Dissolution Audit to determine the most cost-effective path to release these funds.

Question 3

Am I personally liable for business debts while my Texas LLC is forfeited?

Accepted Answer

Yes. Under Section 171.255 of the Texas Tax Code, officers and directors can be held personally liable for debts incurred while corporate privileges are forfeited. Reinstating or formally terminating the entity is critical to closing this liability shield.

Question 4

Can I still file the Texas 'No Tax Due' Report (Form 05-163)?

Accepted Answer

No. As of 2024, the No Tax Due Report (Form 05-163) has been discontinued. Entities must now file a Public Information Report (PIR) or Ownership Information Report (OIR). Filing the old form results in rejection.

Question 5

What is the difference between Reinstatement and Termination?

Accepted Answer

Reinstatement restores your right to transact business and protects your name. Termination (Form 651) formally closes the entity. Both require tax clearance. Attribiz manages both lifecycles to ensure your record is clean with the state.

Question 6

How much are the penalties for late Texas Franchise Tax reports?

Accepted Answer

Even if you owe $0 in taxes, Texas charges a mandatory $50 penalty for each late report. If taxes are owed, penalties start at 5% and increase to 10% after 30 days. Our audit calculates these exact amounts before you file.

Question 7

What happens if my business name was taken while I was forfeited?

Accepted Answer

If your business name was taken during forfeiture, you cannot reinstate under the old name. You must file a Certificate of Amendment to change your name simultaneously with your reinstatement. We check name availability instantly.

Question 8

Does a Texas Franchise Tax Extension apply if I owe $0?

Accepted Answer

Yes, but accuracy is critical. A valid extension requires proper estimation. If you estimate $0 but actually owe tax, your extension may be voided, triggering retroactive penalties.

Question 9

How long does the Reinstatement or Dissolution Audit take?

Accepted Answer

Standard processing typically takes 25-30 days due to manual Comptroller review. Rush processing can expedite submission to 4-8 business hours. Our audit identifies which timeline applies to your specific file.

Question 10

What is the difference between a PIR (05-102) and OIR (05-167)?

Accepted Answer

The PIR is generally for LLCs/Corporations and discloses officers. The OIR is for Partnerships. Filing the wrong report prevents tax clearance. We automatically select the correct form based on your entity type.

Question 11

Can I process a filing if I lost my Texas XT Webfile number?

Accepted Answer

Yes. Our diagnostic process can often bypass the need for you to personally retrieve the XT number, or we can assist in recovering it from the Comptroller.

Question 12

Can I pay Texas Franchise Tax with a credit card?

Accepted Answer

Yes, for Webfile payments. However, certain past-due filings or dissolution fees require checks or specific processing. We coordinate the correct payment method for each agency.

Texas Entity Lifecycle & Compliance Management

How It Works

1. Status Check

2. Audit & Calculation

3. Resolution & Filing

4. Future Proofing