5 359 Texas Form in PDF

Detailed Guide for Writing 5 359 Texas

Before terminating a taxable entity's existence or its registration in Texas, certain steps need to be followed. The process involves ensuring all tax obligations under the Comptroller’s purview are satisfied and all relevant tax accounts are appropriately closed. To assist with this, the 05-359 form serves as a request for a Certificate of Account Status. Completing this form accurately is crucial for a smooth termination process. Below is a guide to help fill out the form.

1. Section A - Entity Information:
   • Enter the entity’s legal name, taxpayer number, and file number as recorded by the Texas Secretary of State.
   • If your entity is part of an affiliated group that files a combined report, select “YES” and provide the legal name and Texas taxpayer number/FEI number of the entity reporting on your behalf. If “NO,” proceed to Section B.
   • If applicable, indicate whether the entity’s accounting year begins on or after the accounting year begin date of the combined group. If “YES,” include the entity’s required information in the combined report. If “NO,” provide the entity's accounting year begin date and the day before the combined group’s accounting year begin date.
2. Section B - Texas Entity: If the entity was formed in Texas, indicate whether the certificate is requested for termination, merger, or entity conversion.
3. Section C - Non-Texas Entity:
   • Indicate if the entity is still conducting business in Texas. If “NO,” enter the last day of business in Texas.
   • Confirm whether the entity has an active charter in its home state. If “NO,” provide the type and effective date of termination, merger, or entity conversion and input the name of the survivor entity, if applicable.
4. Section D - Receiving Your Certificate:
   • Specify if the entity's certificate or registration has been forfeited and needs to be reinstated before the termination or registration can end in Texas.
   • Select the preferred method to receive your certificate: via fax, email (as a .PDF), or mail. Provide the corresponding fax number, email address, or mailing address based on your selection.
5. Input the name and phone number (including extension, if any) of the authorized agent completing the form.

After filling out the form, review it carefully to ensure all information is accurate and complete. Submit the form to the Comptroller of Public Accounts at the appropriate address or via email if that option is available. Remember, processing times can vary, so it's advisable to submit the form well in advance of the planned termination or conversion date. For any further assistance, consider reaching out to the Texas Comptroller’s office directly through the provided contact numbers or visit their official website.

Filling out the 05-359 Texas form for requesting a Certificate of Account Status to terminate a taxable entity's existence or registration in Texas requires attention to detail. Here are ten common mistakes people make when completing this form:

1. Providing Incomplete Entity Information: Skipping important sections such as the entity’s legal name, taxpayer number, or file number can delay the process.
2. Incorrect Affiliation Status: Incorrectly stating whether the entity is a member of an affiliated group required to file a combined report leads to confusion and inaccuracies in tax responsibilities.
3. Accounting Year Begin Dates Errors: Failing to properly align the entity’s accounting year begin date with the combined group's accounting year begin date, if applicable, complicates compliance verification.
4. Omitting Status of Business in Texas: For non-Texas entities, inaccurately stating whether the entity is still conducting business in Texas or omitting the last day of business can affect the termination process.
5. Inadequate Home State Information: Not providing information on the entity’s active charter in its home state or details on its termination, merger, or conversion if the charter has ended.
6. Forgetting to Include Home State Documentation: Neglecting to attach home state documentation proving the termination or change in the entity’s legal status can halt the entire application process.
7. Reinstatement Overlook: Not indicating whether a forfeited certificate or registration needs to be reinstated before proceeding with the ending of its existence or registration in Texas.
8. Communication Preference Errors: Failing to accurately indicate how the certificate should be received, whether via fax, email, or mail, can lead to delivery issues.
9. Inaccurate Contact Information: Providing wrong or incomplete contact information, including mailing address, fax number, or email address, might result in receiving no certificate.
10. Lack of Signature: Forgetting to sign the form or provide the name and phone number of an authorized agent can invalidate the whole request.

To avoid these mistakes, it's crucial to closely review the form instructions and provide all required information clearly and accurately. Ensuring every detail is correct can streamline the process of terminating an entity’s existence or registration in Texas, helping to avoid unnecessary delays or complications.

When the time comes for a business entity in Texas to conclude its operations and legally terminate, it’s essential not to overlook the necessity for other forms and documents that often accompany the Form 05-359, Request for Certificate of Account Status to Terimeter a Taxable Entity's Existence in Texas or Registration. This comprehensive process ensures all regulatory and compliance boxes are checked off, thus avoiding any unwelcome surprises or legal snags down the line. Let’s delve into some of these requisite forms and documents.

• Form 05-102: Public Information Report (PIR) - Required annually by the Texas Comptroller of Public Accounts, this report collects vital information about a business's officers or directors and its registered agent and office. It’s crucial for entities winding down to have their latest information on file.
• Form 05-158-A: Texas Franchise Tax Report - The larger part of the two-part Texas Franchise Tax Report, this form outlines a taxable entity's financial information and is instrumental in calculating the amount of franchise tax owed by the entity.
• Form 05-158-B: Texas Franchise Tax Report Information and Instructions - Serving as a guide for completing Form 05-158-A, this document offers detailed instructions and clarifications to help entities accurately report their earnings and determine their tax obligations.
• Form 05-163: No Tax Due Information Report - For entities that believe they owe no franchise tax, this form serves as a declaration of such and helps in streamlining the closure process by asserting the entity’s non-taxable status.
• Form 801: Application for Reinstatement and Request to Set Aside Tax Forfeiture - If a business learns it has been involuntarily dissolved or its registration forfeited due to tax noncompliance, this form allows the entity to apply for reinstatement after resolving the outstanding issues.

Understanding and assembling the correct dossier of forms and documents to accompany the Form 05-359 is akin to gathering all the pieces of a puzzle. When each is correctly completed and placed, the picture of a business successfully and legally concluding its affairs in Texas becomes clear. Each document serves its unique purpose, from ensuring that the final tax responsibilities are met to updating the public record with the latest business information. The process might seem daunting at first glance, but with careful attention to detail and a thorough understanding of the requirements, it can be navigated smoothly and effectively.

The "Articles of Dissolution" is one document with similarities to the 05-359 Texas form, which entities use to formally dissolve and cease their operations. Both documents serve a crucial role in the discontinuation of a business's legal existence, requiring entities to address all outstanding obligations, such as taxes, before proceeding. While the 05-359 form specifically requests a certificate to confirm a Texas entity's tax status as part of the termination process, Articles of Dissolation cover a broader range of dissolution-related requirements and are filed with the state to officially end a business's existence.

The "Certificate of Cancellation" for Limited Liability Companies (LLCs) also parallels the 05-359 Texas form. This document formally terminates an LLC's existence within a state, similar to how the 05-359 form is used by taxable entities seeking to end their operations in Texas. Both documents require the entity to be in good standing, particularly regarding tax obligations, ensuring that all financial matters are settled before the entity can dissolve or withdraw registration.

The "Statement of Withdrawal from Partnership" is another document with a similar purpose to the 05-359 form, used when a partnership wishes to dissolve or a partner wants to withdraw from the business. Like the 05-359 form, which addresses tax obligations for entities seeking to terminate their existence, the Statement of Withdrawal ensures that the partnership has met all legal and financial requirements before the dissolution or withdrawal takes effect.

The "Application for Withdrawal of Foreign Entity" has notable similarities to the 05-359 Texas form. Both are geared toward entities that are originally registered outside the state but wish to cease operation within the jurisdiction. The 05-359 form is part of the process for terminating a foreign entity's registration in Texas, requiring clearance of all due taxes, much like the Application for Withdrawal demands compliance with various state laws and obligations before withdrawal is approved.

The "Request for Tax Clearance" document, often required in other jurisdictions, shares its core purpose with the 05-359 Texas form. It is another vital step for entities seeking to dissolve, withdraw, or terminate their operations, confirming that all tax liabilities have been satisfied. While the specifics of the documents may vary, both ensure that the entity has settled its tax obligations, emphasizing the importance of financial closure in the dissolution process.

A "Corporate Resolution to Dissolve" is a document that also aligns with the intent behind the 05-359 form. It typically originates from a corporation's board of directors, detailing the decision to dissolve the entity. Similar to the 05-359 form, it is a procedural step towards ending a business's legal and operational existence, though the resolution focuses more on the internal decision-making process, and the 05-359 form deals with the external tax clearance requirements.

The "Notice of Dissolution" that businesses must often file or publish is akin to the 05-359 form in its purpose of notifying interested parties about an entity's impending termination. The 05-359 form's primary role is to help resolve tax-related matters as part of the dissolution process, while a Notice of Dissolution serves a broader notification purpose, informing creditors, employees, and others of the business's closure, inviting claims against the entity before its formal dissolution.

Lastly, the "Change of Registered Agent/Office" documentation, although primarily for updating records, shares a tangential connection with the 05-359 Texas form. This similarity lies in the necessity of keeping official entity records current with state agencies, particularly in contexts that might precede or coincide with an entity's decision to dissolve or terminate its existence in the state, underscoring the interconnectedness of administrative compliance and the formal cessation of business operations.

When filling out the form 05-359, Request for Certificate of Account Syndrome to Terminate a Taxable Entity’s Existence in Texas or Registration, pay careful attention to the following tips to ensure the process is completed accurately and efficiently.

Do:

1. Ensure all your tax obligations under Title 2 of the Texas Tax Code are fulfilled and that all relevant tax accounts are closed. This is crucial for the timely processing of your request.
2. Provide accurate and current entity information in Section A, including the legal name, taxpayer number, and file number. This information is essential for identifying your entity with the Texas Comptroller's Office.
3. Clearly indicate your intention in Section B or C, depending on whether your entity was formed in Texas or outside Texas. Completing the correct section is vital for the proper processing of your termination or conversion.
4. Choose a preferred method for receiving your certificate in Section D, and provide the correct contact information. This ensures you receive your certificate in a timely manner and through the desired communication method.

Don't:

1. Skip providing information about whether the entity is part of an affiliated group required to file a combined report in Section A. This information determines how your entity’s filing status is handled.
2. Leave any sections applicable to your entity's status incomplete. Inaccurate or incomplete information can delay the processing of your request or lead to its denial.
3. Forget to include home state documentation if your entity’s home state charter has been terminated. This documentation is necessary for entities formed outside of Texas and looking to terminate their existence or registration in Texas.
4. Overlook checking if your entity has a forfeited certificate or registration that needs to be reinstated before ending its existence or registration in Texas. This could prevent you from successfully completing the termination process.

Following these guidelines will help streamline the termination or conversion process of a taxable entity’s existence in Texas, ensuring compliance with all requirements and facilitating a smoother transition.

There are several misconceptions about the Form 05-359, which is used to Request a Certificate of Account Status to Terminate a Taxable Entity’s Existence in Texas or Registration. Understanding these misconceptions can help in accurately completing and submitting the form.

• Only Texas entities need to file Form 05-359. This is incorrect. Both Texas and non-Texas entities that wish to terminate their existence or registration in Texas must file Form 05-359. Non-Texas entities must also provide additional information, such as whether they still conduct business in Texas and if they have an active charter in their home state.

• The form is only for entities that are closing. While Form 05-359 is primarily used by entities intending to terminate their existence in Texas, it's also required for entities undergoing mergers or entity conversions. The form serves to ensure that all tax obligations are met before these changes can legally take effect.

• Filing the form automatically terminates the entity. Simply filing Form 05-359 does not terminate the entity. The Comptroller's office must review the submitted form, ensure all tax obligations are satisfied, and then issue a Certificate of Account Status for Termination. Only then can the entity legally terminate its existence or registration in Texas.

• There is a filing fee. There is a common misunderstanding that submitting Form 05-359 requires a filing fee. However, the form itself does not require a fee to be processed by the Texas Comptroller’s office. The primary requirement is that the entity meets all tax obligations before termination.

• Any outstanding taxes disqualify the entity from termination. While entities must satisfy filing requirements for all taxes administered by the Comptroller, having outstanding taxes does not automatically disqualify an entity from termination. The entity may arrange to satisfy these obligations or agree on a payment plan, allowing for the issuance of the Certificate of Account Status.

• The process is immediate. Many believe that the termination process is immediate upon filing Form 05-359. In reality, the process takes time. The Comptroller’s office reviews each request in the order received, and eligibility for a Certificate of Account Status is determined upon this review. If not eligible, the entity will be informed of the requirements needed to become eligible.

Correcting these misconceptions is crucial for entities looking to terminate their existence or registration in Texas successfully. It ensures proper compliance with state requirements and facilitates a smoother transition during the termination process.

Filling out and using the Form 05-359 is crucial for entities aiming to terminate their existence or registration in Texas. Here are 10 key takeaways to help navigate the process smoothly:

• Entities should confirm all filing requirements for taxes under Title 2 of the Texas Tax Code are satisfied before seeking termination.
• Closing all open tax accounts is a necessary step towards acquiring a Certificate of Account Status.
• For assistance or to check if the entity is current with tax requirements, the Comptroller's office can be reached at 1-800-252-1381 or 512-463-4600.
• Information and guidance are available online, providing a valuable resource for entities undergoing this process.
• If part of an affiliated group, additional details regarding the reporting entity must be provided, affecting how financial information is consolidated.
• The form requires specifics on the entity’s accounting year and how it aligns with the affiliated group’s reporting, if applicable.
• Different sections of the form cater to Texas-based entities and those formed outside of Texas, each with specific requirements for termination.
• Entities not actively conducting business in Texas or those with a terminated home state charter must provide detailed information on their status.
• The preferred method of receiving the Certificate of Account Status can be indicated on the form, including options for fax, email, or mail.
• Eligibility for receiving a certificate will be determined upon review of the submitted form, with all requests processed in the order they are received.

Understanding and following these guidelines ensures a smoother transition through the termination process, aiding entities to comply with Texas regulations efficiently. Remember, assistance is readily available through the Comptroller's office or online resources for any questions or clarifications needed.