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Restarting a business

Asked by: Sam - 10 September, 2012 I am here in Texas and already have an LLC company but has not been doing business since 2004. With this company I had 2 DBA and the same applies. So what do I need to do to restart these> Is my DBA still good? Must I refile?
Answered by: Ray Albert - 11 September, 2012 Sam,

Being that the company has been inactive since 2004, I am assuming that means the annual franchise taxes haven't bee paid up to date. Typically, after a company fails to comply with its tax obligations for a year, it is forfeited by the Texas Secretary of State under the Texas Tax Code.

An entity forfeited under the Tax Code can reinstate at any time by filing its' past-due tax reports, paying all franchise taxes, penalties, and interest accrued, and by applying for entity reinstatement, accompanied by a tax clearance letter from the Texas Comptroller of Public Accounts stating that the entity has satisfied all of its franchise tax obligations and is eligible for reinstatement.

In regards to the DBA's, in Texas a DBA registration is effective for 10 years. That being said, if you reinstate your original LLC, you should not have to make any changes to the DBA's, provided no information with the parent entity would be changed.

In your case, it may be worth considering the possibility of forming a new LLC in Texas, as the fees could be quite large to reinstate the old one after 8 years of inactivity. If you form a new LLC, it's very possible you would be able to keep the registered DBA's by amending the ownership details to match the new parent company.

Keep in mind, if you form a new LLC, it will have to obtain a new EIN as well, so you would have to change any current bank accounts, licenses, permits, etc. that are issued to the business.


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