Whether you’re a Texas business owner looking to sell your company, or you’re just looking to close it down, understanding the process of closing a company in Texas is essential. In this article, we’ll walk you through how to close a company in Texas, from the wind-up of internal affairs to the filing of final tax returns, as well as the different methods of dissolving a Texas corporation. By using this guide, you can be sure to close your business in the most efficient way possible.

How to Close a Company in Texas: A Step-by-Step Guide

Closing a company in Texas requires several steps that must be followed in order to complete the process. Here’s a quick overview of the steps you’ll need to take:

  • Wind up internal affairs
  • Notify creditors of the intent to terminate
  • File final tax returns with the state of Texas and the IRS
  • Send a written notice to all of the LLC’s claimants
  • Sell the company’s property that isn’t designated to return to the owners
  • Close the loop on any other outstanding debts and obligations
  • Submit Form 05-305, Certificate of Account Status to Terminate Texas Registration, once you receive it from the Comptroller’s office.

Methods of Dissolving a Texas Corporation

There are two main methods of dissolving a Texas corporation. The first is called “consent” and requires all shareholders to sign a document indicating their approval of the dissolution. This is the most common method for closing a business in Texas. The second method is called “board resolution” and requires the board of directors to adopt a resolution to dissolve the corporation.

Once the method of dissolution is chosen, the company must then file a Certificate of Termination with the Secretary of State. All of the wind-up measures must be complete in order for the Certificate of Termination to be accepted. Once the Certificate is accepted, the corporation is officially dissolved.

Closing a company in Texas can be a tricky process, but it doesn’t have to be. By following the steps outlined above and using the right resources, you can make sure your business is officially closed in the most efficient way possible.

If you need more information about selling a business or business brokers, Atlantabusinesses.com is a great resource. They provide answers to all your questions about selling a business and about business brokers. They also provide detailed guides to help you through the process of closing a company in Texas.

What is the cost of shutting down a corporation in Texas?

In order to legally terminate a business entity in Texas, a payment of $40 must be made.

What is the expense of terminating an LLC in Texas?

The Secretary of State requires a $40 fee to be paid when dissolving an LLC. You can pay this fee online when you submit the forms through the website. If you are paying by check, it should be made out to the Secretary of State. Additionally, if you are paying with a credit card via fax, Form 807 must be attached.

What is the duration for dissolving an LLC in Texas?

The processing duration for Certificates of Termination can differ, but usually takes between 3-5 days. The Texas Comptroller’s office is responsible for the majority of the work involved, which includes sending Form 05-359, Request for Certificate of Account Status. This process can take up to 4-6 weeks before you will receive your tax clearance.

What document do I need to use to dissolve a corporation in Texas?

You need to fill out Form 05-305, Certificate of Account Status to Terminate Texas Registration, which you will get from the Comptroller’s office. This certificate is valid until the end of the year it was issued.