Frequently asked questions
What we check, where the data comes from, and how we handle it.
The basics
What does "good standing" mean?+
It means the state still recognizes your entity as active and compliant: required reports filed, required taxes paid, and a registered agent on file. The exact requirements and the exact wording of the status vary by state.
What is the "right to transact business"?+
In Texas it is the franchise tax status the Comptroller maintains for an entity. While it is active, the entity may transact business in the state. If franchise tax privileges are forfeited, that right is lost until the entity is reinstated.
How is this different from a certificate of good standing?+
A certificate is a document the state issues on request, accurate as of the day it was issued. EntitySentry is continuous monitoring of the underlying public record, so you learn about a change when it happens rather than the next time someone orders a certificate.
How monitoring works
Where does your data come from?+
Official state public records only. In Texas, that is the Comptroller of Public Accounts for franchise tax right to transact and the Secretary of State for entity status of record. As we add states, we use that state's official sources.
How often do you check?+
Every night. Each entity you monitor is checked against the state record on a nightly cycle, and the dashboard shows when the last check ran.
What happens when something changes?+
You get an email alert that names the entity, says what the state record changed to, identifies which agency reported it, and lists the steps to put it right. Firm accounts also get a client-ready draft of that message. The change is recorded in the entity's status history.
Can you fix a lapse for me?+
Done-for-you filings are available as an add-on. In Texas that covers preparing missing franchise tax reports, requesting the tax clearance letter, and filing SOS Form 801 to reinstate.
Texas specifics
What is Texas Tax Code §171.255?+
It is the provision under which officers and directors can become personally liable for a company's debts after the entity's Texas franchise tax privileges are forfeited. It is the main reason a quiet forfeiture is worth catching early. More on the Texas page
What else happens to a forfeited Texas entity?+
A forfeited entity can lose access to Texas courts and cannot legally do business in the state until it is reinstated.
How do I reinstate a Texas entity?+
File every missing report, obtain a tax clearance letter from the Comptroller, then file SOS Form 801 with the Secretary of State.
Coverage, security and scope
Which states are covered?+
Texas is live today. Other states are being added one at a time so each is checked against the right official sources. Request your state and we'll prioritize by demand.
How do you handle security and privacy?+
We monitor public business records, not personal tax data. Entity lists are visible only to your account and the client logins you grant, traffic is encrypted in transit, and we don't sell or share your client list.
Is this legal or tax advice?+
No. EntitySentry reports what official state records say and explains the standard steps involved. It is not a law firm or an accounting firm and does not provide legal or tax advice. For advice about your situation, talk to your attorney or CPA.