How to verify a Texas business for KYB

Texas splits a business's public record across two agencies. The Secretary of State holds the formation filings and charges $1 per search. The Comptroller of Public Accounts holds franchise tax status and the annual Public Information Report, and its search is free. For KYB, start with the Comptroller: one free page shows whether the entity may transact business, its registration date, its registered agent and the people named on its latest report. This guide covers both sources, what they prove, and what to request. It is one of seven state guides built on our study of all 50 state registries and DC.

Step 1: Run the free Comptroller search

The Comptroller's Franchise Tax Account Status search accepts a taxpayer number, a nine-digit federal EIN, an entity name or a Texas Secretary of State file number. There is no fee and no login, and the Comptroller also publishes an API for the same data.

The record we opened on 2026-09-30 showed:

• Right to transact business in Texas, for example Active.
• State of formation.
• SOS registration status, which the page says is updated each business day, and the effective SOS registration date.
• Texas SOS file number.
• Registered agent name and registered office address.
• Mailing address.
• Public Information Report: the report year and each listed person's title, name and address, with a note of whether the source was the Comptroller or the Secretary of State.

The page carries a timestamp ("This record as of…"), so save it with the capture time. It is a strong first document for the file.

Two things the Comptroller states on the same page shape how you read it. Public Information Reports must be filed by corporations, LLCs, limited partnerships, professional associations and financial institutions organized in Texas or with nexus there. Ownership Information Reports, filed by other taxable entities, are confidential and do not display.

Step 2: Search the Secretary of State when you need the filings

The Secretary of State launched SOSPortal, its new business filing system, on September 29, 2026. It replaces both SOSDirect and SOSUpload and brings filing, ordering and searching into one system. The Secretary of State lists multi-factor authentication among its features and says client accounts will not be available in the new system. Accepted payments are ACH and credit card.

Each search carries a $1.00 statutory fee, which Form 806 says is waived when you place an order or filing from the search results. When we checked on 2026-09-30, the Business Services page carried a notice that SOSPortal was unavailable for maintenance. Build that into turnaround expectations for the first weeks of the new system.

Use the Secretary of State search when you need the formation document, amendments, assumed names or a filing history. Plain copies cost $0.10 per page under Form 806.

Step 3: Choose the right certificate

The Secretary of State's copies page explains a confusion that trips up many reviewers.

• A certificate of fact about status, from the Secretary of State, is official evidence of an entity's existence or authority to do business in Texas. It states the status, the current legal name and the date of formation or registration. Form 806 lists it at $15, and a long-form certificate of existence with a list of filings at $25.
• A certificate of account status, from the Comptroller, concerns franchise tax. The Comptroller no longer calls it a certificate of good standing, though many people still do.

For KYB, the Comptroller's free record usually answers both questions at once. If your policy requires a certificate, ask which one it means. The Secretary of State also offers an online certificate verification service, so check any certificate the applicant supplies. Our guide to what a certificate of good standing proves covers the limits.

What the Texas record proves, and what it does not

Red flags specific to Texas files

Status that differs between agencies. The Comptroller shows the right to transact business (a franchise tax question) and the SOS registration status as separate fields. They can differ, so read both lines and ask about any gap.

Public Information Report names you have not seen. Compare every person on the report with the applicant's declared control persons. Unknown officers or managers need an explanation.

An old report year. A report that is several years stale says little about who controls the entity now. Ask for the current organizational documents.

Formation date versus claimed history. The effective SOS registration date is authoritative. A years-long trading history against a recent registration needs a predecessor or an explanation.

Registered office used as the business address. If the only address on file is the registered agent's, the record says nothing about where the business operates. See registered-agent address.

Out-of-state formation. An entity formed elsewhere that operates in Texas should show a foreign registration. The state of formation on the Comptroller record tells you which other registry to check.

What to request from a Texas applicant

• Certificate of formation and any amendments, or the foreign registration and home-state formation document.
• A signed ownership chart with percentages down to natural persons, with identity documents for owners above your threshold. The public record does not show owners.
• The company agreement pages that establish members and managers. See operating agreement.
• The current Public Information Report if the one on the Comptroller record is out of date.
• An EIN confirmation letter. The Comptroller search accepts the EIN, so confirm the number returns the same entity.
• Proof of the operating address.

Costs at a glance

Fees are from the Secretary of State's Form 806 and SOSPortal page, checked on 2026-09-30.

How Sweat AI handles Texas files

Sweat AI is an AI-native BPO for banks and fintechs, starting with back-office workflows like KYB, onboarding and fraud reviews. On a Texas applicant, our analysts capture the Comptroller record, compare its status lines and Public Information Report with the applicant's declarations, and pull Secretary of State filings when the file needs them. The evidence packet ties each finding to its source and capture time, and one consolidated list names what is still missing. Your team makes the decision. See our KYB review service or the step-by-step verification guide.