If you’re looking to form a business, verify a company’s legitimacy, or conduct due diligence in Texas, a Texas business entity search is the essential first step. The state of Texas offers a robust system for accessing business records, whether you’re a startup founder, investor, legal professional, or simply a concerned consumer.
In this complete guide, we break down everything you need to know about navigating the Texas business entity search system, using it strategically, and making the most of your business interactions in the Lone Star State.
What Is a Texas Business Entity Search?
A Texas Business Entity Search allows users to search the Texas Secretary of State (SOS) business database for publicly available information on registered business entities. This includes corporations, LLCs, limited partnerships, nonprofit organizations, professional associations, and assumed name (DBA) filings.
It provides details like:
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Entity name and type
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Registered agent
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Filing status (active, inactive, forfeited)
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Formation date
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SOS filing number
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Office addresses
Why Perform a Texas Business Entity Search?
1. Verify Business Legitimacy
Before signing contracts, making purchases, or entering partnerships, you can confirm whether a company is:
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Properly registered
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In good standing
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Active or dissolved
2. Research Competitors
You can gather valuable information about other businesses in your industry by reviewing:
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Formation dates
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Registered agents
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Business structure types
3. Register a Unique Name
When starting a new business, it’s crucial to check if the desired name is already in use or too similar to an existing entity. The name availability check is the first step toward securing your business identity in Texas.
4. Due Diligence for Mergers & Acquisitions
Conduct background checks on potential partners or acquisition targets to assess credibility, risk, and compliance.
How to Conduct a Texas Business Entity Search
1. Use the SOSDirect System
The official Texas Secretary of State SOSDirect system is the most reliable tool for detailed entity searches.
Website: SOSDirect Search Tool
Steps to Follow:
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Go to the SOSDirect portal.
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Click on “Business Organizations” > “Search” or “Name Availability.”
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Choose your search criteria:
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Entity Name
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Filing Number
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Tax ID (if available)
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Registered Agent
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Enter the details and initiate the search.
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Review the results, which include a summary of all matching businesses.
🛈 Note: SOSDirect may require a $1.00 fee for each detailed entity search.
2. Use the Free TX Comptroller Taxable Entity Search
The Texas Comptroller of Public Accounts offers a free searchable tool for finding taxable entities, which includes basic information.
Website: Texas Comptroller Entity Search
This search includes:
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Legal name
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Franchise tax status
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Registered agent
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Mailing addresses
What Information Can You Find in a Texas Business Entity Report?
When you access a detailed report via SOSDirect, you’ll typically find the following:
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Entity Name: Official name on file.
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Filing Number: Unique ID assigned by the SOS.
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Status: Active, Inactive, Forfeited, Terminated, or Withdrawn.
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Type: Corporation, LLC, LP, etc.
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Date of Formation: Useful for age verification.
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Principal Address
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Registered Agent Info: Name and address.
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Governing Persons: Managers, directors, members, or general partners.
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Filing History: Amendments, mergers, name changes, etc.
How to Register a Business in Texas
To start a new business and get listed in the Texas SOS records, follow these steps:
1. Choose Your Business Structure
Popular structures include:
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Limited Liability Company (LLC)
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Corporation (C or S corp)
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Sole Proprietorship
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Partnership
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Nonprofit Organization
2. Select a Unique Business Name
Run a Texas name availability search to ensure your name is not taken. You can also reserve a name for 120 days by filing Form 501.
3. File the Certificate of Formation
Use SOSDirect to file:
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Form 201 for LLCs
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Form 202 for Corporations
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Form 205 for Nonprofits
The filing fee is typically:
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$300 for LLCs and Corporations
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$25 for Nonprofits
4. Designate a Registered Agent
All entities must appoint a registered agent with a physical address in Texas.
5. Obtain an EIN from the IRS
Apply online through the IRS website to get your Employer Identification Number (EIN).
6. Register for State Taxes (If Applicable)
Visit the Texas Comptroller website to:
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Register for sales and use tax
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Apply for franchise tax reporting
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Check other tax requirements
How to Check if a Texas Business Is in Good Standing
The “good standing” status indicates whether a business is compliant with state regulations, including franchise tax obligations.
To verify:
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Use the Texas Comptroller Entity Search
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Check for “Right to Transact Business in Texas” under Franchise Tax Status
If the status shows “Not in Good Standing” or “Franchise Tax Forfeited,” the business could face:
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Revocation of rights
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Penalties
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Administrative dissolution
Common Mistakes to Avoid
1. Ignoring Name Conflicts
Just because a name doesn’t appear in results doesn’t guarantee availability. Always run a name availability check.
2. Not Updating Business Records
Businesses must file annual reports and amendments to keep entity info current.
3. Using Outdated Information
Entity statuses can change. Always conduct real-time searches before making decisions.
Texas Business Entity Search: Key Benefits for Entrepreneurs and Professionals
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Build trust with partners and customers by verifying your own public record.
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Monitor compliance and avoid forfeiture notices from the state.
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Protect your brand by watching for similarly named businesses.
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Stay competitive by researching market entries and industry players.
Final Thoughts
The Texas Business Entity Search is a powerful tool that goes beyond simple lookups. Whether you’re starting a business, exploring partnership opportunities, or evaluating market risks, understanding how to navigate the Secretary of State’s database gives you a competitive edge.
Use the SOSDirect portal for comprehensive entity data, or turn to the Texas Comptroller’s office for tax compliance verification. Stay informed, stay compliant, and ensure your Texas business journey is set for success.
