Question 1

What does it mean if my entity is "forfeited"?

Accepted Answer

Under Texas Tax Code §171, if a business fails to file its franchise tax report or pay the required tax, the Texas Comptroller can forfeit its corporate privileges. This means the entity loses its right to transact business in Texas, cannot sue or defend itself in state courts, and officers/directors may become personally liable for business debts.

Question 2

How long does the reinstatement process take?

Accepted Answer

Once we identify the missing filings and they are submitted, the Texas Secretary of State typically processes the reinstatement within 2 to 3 weeks.

Question 3

Why was my business bank account frozen?

Accepted Answer

Financial institutions regularly check the entity status of their business clients. If your Certificate of Account Status shows as forfeited or revoked, banks will often freeze accounts or halt transactions to comply with regulations and mitigate their own risk until good standing is restored.

Question 4

Do I need a lawyer to reinstate my entity?

Accepted Answer

In most cases, no. Reinstating an entity is generally an administrative and procedural process with the Texas Comptroller and Secretary of State. We provide procedural clarity and handle the necessary steps to get your entity back into compliance. However, we do not provide legal advice.

Question 5

What is a Certificate of Account Status?

Accepted Answer

A Certificate of Account Status (formerly known as a Certificate of Good Standing) is an official document issued by the Texas Comptroller. It proves that your entity is legally authorized to transact business in Texas and has met all franchise tax requirements.

Question 6

What happens if a Comptroller forfeiture is not resolved?

Accepted Answer

The Texas Secretary of State may later forfeit the entity’s charter, certificate, or registration if the delinquency is not cured and the entity is moved through the next statutory step.

Question 7

What is a Webfile number and where do I find it?

Accepted Answer

A Webfile number is the Texas Comptroller’s electronic filing access code for a taxpayer account. For franchise tax, it is usually an 8-character code starting with XT (e.g., XT123456). You can find it on a notice or filing reminder from the Texas Comptroller, often printed in the upper right corner.

Question 8

What if I can't find my Webfile number?

Accepted Answer

If you do not have the notice, you can contact the Comptroller to verify your business information and retrieve it.

Frequently Asked Questions