Texas Certificate of Account Status (Form 05-359)

What is a Texas Certificate of Account Status?

A Texas Certificate of Account Status is a document from the Texas Comptroller of Public Accounts confirming that an entity has filed its franchise-tax reports and paid what it owes. The version you need for closing a business, associated with Form 05-359certifies the account is in good standing for the purpose of termination. It is the Texas tax gate you have to pass through before you can end the entity.

Texas splits dissolution across two agencies, which is what makes people think it's complicated. The Comptroller handles the tax side and issues this certificate. The Secretary of State handles the entity side and accepts Form 651, the Certificate of Terminationbut only once the Comptroller's certificate is attached. So this certificate isn't the thing that ends your company; it's the permission slip that lets you file the thing that does.

05-359 vs. Form 651 vs. a good-standing certificate

Three Texas documents get confused constantly. Here is what each one actually is:

• Certificate of Account Status (Form 05-359 context). From the Comptroller. Confirms franchise-tax standing for termination. It is a prerequisite, not the termination itself.
• Form 651, Certificate of Termination. From the Secretary of State. This is the filing that actually ends the entity's existence. It requires the Comptroller's certificate as an attachment.
• General Certificate of Account Status / good standing. A routine version the Comptroller issues for financing, licensing or everyday proof. It is not the termination version, and the Secretary of State will not accept it for Form 651.

The most common mistake is requesting the everyday account-status printout when you need the one specifically issued for termination. Ask the Comptroller for the certificate for the purpose of ending the entity's existenceso it satisfies the Secretary of State.

The order the two filings go in

Sequence is the whole point in Texas. The correct order is:

1. File all franchise-tax reports, including a final report. Texas wants the account fully reported through the closing period.
2. Pay any franchise tax, penalty and interest owed. The certificate won't issue while a balance remains.
3. Request the Certificate of Account Status for termination from the Comptroller.
4. File Form 651, the Certificate of Termination, with the Secretary of State, with the Comptroller's certificate attached, and pay the roughly $40 fee.

Do it out of order, file Form 651 first, and the Secretary of State rejects it for the missing certificate. This two-agency dance is why dissolving in Texas takes longer than a one-filing state.

How to request the certificate, step by step

To obtain the Certificate of Account Status for termination, you generally provide:

• The entity's legal name and Texas taxpayer number (and often the Secretary of State file number), matching the Comptroller's records.
• Confirmation that all franchise-tax reports are filedincluding the final report for the year you cease business.
• Payment of any outstanding tax, penalty and interestbringing the account to a zero balance.
• A request specifying the certificate is for termination or withdrawalso the right version issues.

The Comptroller then reviews the account and, once it is clear, issues the certificate you attach to Form 651.

What does it cost, and which agencies are involved?

The Comptroller does not charge a fee to issue the Certificate of Account Status for termination, the “cost” is clearing your franchise-tax balance first. Separately, the Secretary of State charges around $40 to file Form 651, the Certificate of Termination. So two agencies, one small filing fee, and the real expense being whatever back franchise tax the entity owes.

Confirm both current figures before you begin; state fees and thresholds change. We charge state fees at cost.

What happens after you get the certificate?

With the Certificate of Account Status in hand, you file Form 651 with the Secretary of State, attach the certificate, and pay the fee. Once accepted, the entity is terminated on the state record, keep the stamped Form 651 as proof. Then the federal side remains: file your final federal return marked final, file Form 966 for a corporation, and close the IRS business account behind your EIN. The Comptroller and Secretary of State handle only Texas matters; nothing about either reaches the IRS, so the federal closure is still yours to complete.

Why do requests and terminations fail?

• Franchise tax outstandingthe certificate won't issue until reports are filed and the balance is zero.
• No final report filedthe Comptroller expects the account reported through closing.
• Wrong certificate versionrequesting the everyday account status instead of the termination version.
• Form 651 filed without the certificatethe Secretary of State rejects it as incomplete.
• Name or taxpayer-number mismatchdetails don't match the Comptroller or Secretary of State record.
• Unauthorized signerForm 651 signed by someone without authority.

Rather have both Texas filings handled?

We confirm your franchise-tax standing with the Comptroller, request the correct Certificate of Account Status for termination, file Form 651 with the Secretary of State, and re-file free if anything bounces. If back franchise tax is owed, we'll tell you what it takes to clear it first. A specialist is on WhatsApp 24/7 and will tell you which package is genuinely yours, even if that's the $99 or nothing at all.