When it comes to verifying a business in Texas, the Texas Business Entity Search is one of the best tools available. Whether you are a business owner, an investor, or just a cautious consumer, this database—managed by the Texas Comptroller of Public Accounts—gives direct access to whether or not a business is legally authorized to exist in this state.
This guide will cover, how search function works, what kind of information is available, and the importance of the information. By the end, you will be able to use the tool like an expert, and understand how it compares with other U.S. business databases like the EIN Database and the SEC’s EDGAR Database.
What Is the Texas Business Entity Search?
The Texas Business Entity Search is part of the state’s Franchise Tax Account Status system. It allows the public to check whether a business is in good standing with the Texas Comptroller, which is critical because companies must stay compliant with franchise tax obligations to legally operate in the state.
The database is publicly accessible here: Texas Comptroller Franchise Tax Account Status Search.
At its core, this tool answers one question: Is this business legally allowed to transact in Texas?
How the Texas Business Entity Search Interface Works
When you first open the search page, the interface is straightforward (see screenshot above). You have three main options to search for a company:
- Taxpayer Number – An 11-digit Comptroller Taxpayer ID or the 9-digit Federal EIN.
- Entity Name – The business name or a keyword.
- Texas Secretary of State (SOS) File Number – A unique number assigned when the entity registers with the Texas Secretary of State.
After entering your search criteria, the system returns a list of matching entities.
Example: Searching by Entity Name
If you type in a general term such as “construction”, the results may include dozens of entities. Each result shows:
- Entity Name
- Taxpayer Number
- ZIP Code
This quick view makes it easy to filter down and identify the correct business.
Detailed Business Records
Clicking on a business name in the results opens a detailed profile. This is where the Texas Business Entity Search becomes especially valuable. The expanded record includes:
- Texas Taxpayer Number
- Mailing Address
- Right to Transact Business in Texas (Yes/No)
- State of Formation (e.g., Texas, Delaware, etc.)
- SOS Registration Status (updated daily)
- Effective SOS Registration Date
- Texas SOS File Number
- Registered Agent Name
- Registered Office Street Address
This information helps answer critical due diligence questions. For example, if the record shows “Right to Transact Business in Texas: No”, it’s a red flag that the company may have failed to file required franchise tax returns or has been forfeited by the Comptroller.
Why the Texas Business Entity Search Matters
1. For Consumers
Imagine you’re hiring a home remodeling contractor. Before paying a deposit, you can run the business name through the Texas Comptroller’s tool to ensure the company is active and authorized to operate.
2. For Investors
If you’re evaluating a startup, this search provides immediate insight into whether the entity has kept up with state compliance obligations. It’s an early warning system for governance issues.
3. For Business Owners
Even established businesses use the search to confirm their own standing. If a mistake in filing has caused a lapse, the database makes that clear before it snowballs into larger legal or financial problems.
Practical Use Cases of the Texas Business Entity Search
- Background checks on contractors, consultants, and vendors.
- Verifying legitimacy of LLCs before signing contracts.
- Confirming registered agents for service of legal documents.
- Checking SOS status for compliance with annual reporting requirements.
This isn’t just theoretical—lawyers, accountants, and journalists rely on this search daily as part of due diligence.
API Access for Developers
One innovative feature is that the Comptroller also provides API access for bulk or automated searches. This is particularly useful for financial analysts, compliance officers, and data journalists who need to monitor multiple entities at once.
The API documentation is available here: Public API Documentation.
For example, a fintech compliance team could integrate the API into their internal tools to automatically flag when a Texas vendor loses its “Right to Transact Business.”
Comparing Texas to Other Business Databases
While the Texas search is state-specific, it complements other databases that track corporate and financial information nationwide:
- The EIN Database allows searches by Employer Identification Number across all U.S. companies.
- The SEC’s EDGAR Database provides filings for publicly traded companies, including annual reports and insider transactions.
By combining these tools, you can build a layered picture: Texas entity status, federal EIN validation, and national securities filings.
Best Practices When Using the Texas Business Entity Search
- Start with the Entity Name – If you don’t have a Taxpayer ID, begin with the name. Use partial keywords if you’re unsure of the exact spelling.
- Cross-Check Results – Businesses may have similar names. Always confirm by Taxpayer Number or SOS File Number before making conclusions.
- Look at “Right to Transact” First – This is the most critical field for determining compliance.
- Save Records – Download or screenshot search results when doing due diligence, so you have a reference point in case the status changes.
- Use the API for Scale – If you regularly review multiple businesses, automation can save significant time.
Frequently Asked Questions (FAQ)
How to look up a business entity in Texas?
You can use the Texas Comptroller’s Franchise Tax Account Status Search by entering a Taxpayer Number, Entity Name, or Secretary of State File Number.
Is the TX business search tool free to use?
Yes. The database is fully free and publicly accessible.
How to verify that a company is legit in Texas?
Check that the record shows “Right to Transact Business in Texas: Yes” and confirm the SOS status is active.
Can you see who owns an LLC in Texas?
The database lists the registered agent, but not the individual members or owners. Ownership details typically require additional filings with the Texas Secretary of State.
Can you lookup the owner of an LLC?
Not directly through this tool. You may need to request public filings from the Texas SOS or review governing documents filed during registration.
Conclusion
The Texas Business Entity Search is more than just a tax compliance check—it’s a vital transparency tool. From verifying contractors to evaluating startups, it empowers citizens, investors, and professionals to make informed decisions.
In a business climate where due diligence is non-negotiable, this public database is one of the clearest windows into whether a company is operating above board in Texas.
Sources
- Texas Comptroller of Public Accounts – Franchise Tax Account Status Search
- Texas Comptroller – Public API Documentation
- The Database Search – EIN Database Guide
- The Database Search – SEC EDGAR Database Guide
