Texas reinstatement is straightforward and cheaper than California, but the franchise tax system has important nuances. Here's everything you need to know about getting your Texas LLC back in good standing.
Texas Reinstatement Costs (2026)
- Reinstatement filing fee: $100–$300 (depends on entity type and timing)
- Back franchise taxes: Owed for years the LLC should have filed
- Penalties: 5–10% of unpaid franchise tax for late payment
- Interest: 1% per month compounding on unpaid taxes
- Tax clearance: Required; no filing fee but must be obtained from Comptroller
Good news: Texas franchise tax is only owed if your LLC had gross revenues exceeding $1.23 million. Most small LLCs don't owe franchise tax, which dramatically lowers reinstatement cost.
Step 1: Determine if You Owe Franchise Tax
Check your business's total revenue in each year of dissolution:
- If annual gross revenue was under $1.23 million: You may owe $0 in franchise tax (pay only filing fees)
- If annual gross revenue exceeded $1.23 million: Calculate the franchise tax owed (0.375% of revenue minus allowable deductions)
This is the single biggest factor in Texas reinstatement cost. Many business owners discover they owe nothing beyond the filing fee.
Step 2: Get Tax Clearance from Comptroller
You must obtain a Certificate of Good Standing from the Texas Comptroller of Public Accounts before filing reinstatement.
Request options:
- Online through the Comptroller's website (same-day, $0 cost)
- By phone: 512-463-5411
- By mail (allow 2 weeks)
Step 3: Pay Any Outstanding Franchise Tax
If you owe franchise tax, pay through the Comptroller's website. Once payment is received, they'll issue your certificate of good standing.
Payment methods:
- Online (credit/debit card)
- Check or money order by mail
- Electronic funds withdrawal
Step 4: File Application for Reinstatement with Secretary of State
Once you have the Comptroller's clearance, file the Application for Reinstatement with the Texas Secretary of State.
Required documents:
- Completed Application for Reinstatement form
- Certificate of Good Standing from Comptroller
- Filing fee ($100–$300)
- Proof of registered agent (in Texas)
File online through the Secretary of State website.
Step 5: Verify Reinstatement
Processing time: 2–5 business days. Your LLC is active once the SOS issues a Certificate of Reinstatement.
Verify status on the Texas Secretary of State's Business Search portal.
Texas Reinstatement Timeline
| Step | Timeframe |
|---|---|
| Determine franchise tax obligation | 1–2 days |
| Get Comptroller clearance | Same day (online) – 2 weeks (mail) |
| Pay any franchise tax owed | Same day (online) |
| File reinstatement application | 1 day |
| Processing by SOS | 2–5 business days |
| Total | 3–10 business days |
Common mistake: Filing reinstatement before obtaining Comptroller clearance. SOS will reject incomplete applications. Always get clearance first.
What Makes Texas Reinstatement Fast
- No multi-week tax clearance waiting period (like California)
- Low reinstatement filing fees
- Most small LLCs owe $0 in franchise tax
- Online filing available at both Comptroller and SOS
Texas Franchise Tax Threshold Explained
The $1.23 million threshold applies to combined revenues from your LLC and any other businesses you control. Even if your LLC only did $500k in revenue, if you had other businesses pushing total revenues above $1.23M, the LLC franchise tax kicks in.
Franchise tax calculation (if you owe it):
- Take your gross revenue for the year
- Subtract allowable deductions (up to $1.23M is always exempt)
- Multiply by 0.375% (or use the lower rate for certain business types)
- Minimum tax: $130/year
What Happens After Reinstatement?
Your LLC is active, but obligations resume immediately:
- Franchise tax: Due every year if revenues exceed $1.23M (even if you've missed prior years)
- Registered agent: You must maintain a registered agent with a Texas address
- Franchise tax reporting: Even if you don't owe tax, you may need to file "no tax due" forms
- Business licenses: Any professional or industry-specific licenses require separate reinstatement
Check your Texas LLC status and reinstatement cost
See if you owe franchise tax, get your exact filing fee, and verify reinstatement eligibility.
Check My Texas LLC →When to Reinstate vs. Start Fresh in Texas
Reinstatement is the better choice if:
- You had very low revenue (under $1.23M) — reinstatement costs only $100–$300
- You have established business credit or licenses
- The LLC operated for multiple years and has goodwill
Consider a fresh LLC if:
- You had very high revenue and owe significant franchise tax
- The dissolved entity has liabilities you want to leave behind
- You're pivoting entirely and want a clean slate