Form 652 General Information Certificate of Termination of a Sos Texas
What is Form 652?
Form 652, known as the Certificate of Termination, is a legal document used in Texas to formally dissolve a business entity. This form is essential for companies that wish to cease operations and ensure that they are no longer recognized as active entities by the state. The filing of Form 652 is a critical step in the termination process, as it provides official notice to the Texas Secretary of State that the business has been dissolved.
How to Use Form 652
To effectively use Form 652, businesses must complete the form with accurate information regarding the entity's name, the reason for termination, and the date of dissolution. Once filled out, the form should be submitted to the Texas Secretary of State. It is important to ensure that all required fields are completed to avoid delays in processing. Businesses should keep a copy of the submitted form for their records.
Steps to Complete Form 652
Completing Form 652 involves several key steps:
- Gather necessary information about the business, including its legal name and Texas file number.
- Indicate the reason for termination, which may include voluntary dissolution or other specified reasons.
- Provide the date of dissolution and any other required details as outlined in the form.
- Review the form for accuracy and completeness before submission.
Legal Use of Form 652
Form 652 serves a legal purpose in the dissolution of a business entity in Texas. By filing this form, businesses comply with state laws governing termination procedures. It ensures that the business is officially recognized as dissolved, which protects the owners from future liabilities associated with the entity. Failure to file this form may result in continued tax obligations and legal responsibilities.
Required Documents for Filing Form 652
When filing Form 652, certain documents may be required to support the termination process. These can include:
- Proof of the business's existence, such as the original formation documents.
- Any resolutions or agreements from the owners or shareholders authorizing the dissolution.
- Final tax returns or documents indicating that all debts and obligations have been settled.
Filing Methods for Form 652
Form 652 can be submitted through various methods to the Texas Secretary of State. These methods include:
- Online submission through the Secretary of State's website.
- Mailing the completed form to the designated office address.
- In-person submission at the local Secretary of State office.
Eligibility Criteria for Form 652
To be eligible to file Form 652, the business entity must be in good standing with the Texas Secretary of State and must have resolved any outstanding debts or obligations. Additionally, the decision to dissolve should be made in accordance with the entity's governing documents, such as bylaws or operating agreements. It is advisable for businesses to consult with legal counsel to ensure compliance with all requirements before filing.
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