Form 631
2
and (2) the governing documents of the converting entity. Section 21.453 of the BOC sets forth the
requirements for approval of the plan of conversion by a Texas for-profit or professional
corporation.
• Effectiveness of Filing: A certificate of conversion becomes effective when accepted and filed by
the secretary of state (option A). However, pursuant to sections 4.052 and 4.053 of the BOC the
effectiveness of the instrument may be delayed to a date not more than ninety (90) days from the
date the instrument is signed (option B). The effectiveness of the instrument also may be delayed on
the occurrence of a future event or fact, other than the passage of time (option C). If option C is
selected, you must state the manner in which the event or fact will cause the instrument to take effect
and the date of the 90
th
day after the date the instrument is signed. In order for the certificate to take
effect under option C, the entity must, within ninety (90) days of the filing of the certificate, file a
statement with the secretary of state regarding the event or fact pursuant to section 4.055 of the
BOC.
On the filing of a document with a delayed effective date or condition, the computer records of the
secretary of state will be changed to show the filing of the document, the date of the filing, and the
future date on which the document will be effective or evidence that the effectiveness was
conditioned on the occurrence of a future event or fact. In addition, at the time of such filing, the
status of a converting Texas filing entity will be shown as “conversion” on the records of the
secretary of state.
• Tax Certificate: The secretary of state may not accept a certificate of conversion for filing if the
required franchise taxes have not been paid (BOC § 10.156). The certificate of conversion must be
accompanied by a certificate of account status from the Texas Comptroller of Public Accounts
indicating that the converting entity is in good standing having no franchise tax reports or payments
due. The certificate of account status must be valid through the effective date of filing of the
conversion. Please note that the Comptroller issues many different types of certificates of account
status. A certificate of account status for purposes of conversion obtained from the Comptroller’s
web site will be accepted only when the converted entity is subject to franchise tax under Texas law.
A general partnership, other than a limited liability partnership, comprised solely of individuals is
not liable for franchise tax. If the converted entity will not be liable for franchise tax you will need
to attach form #05-329, which is obtained directly from a Comptroller of Public Accounts
representative.
Requests for certificates or questions on tax status should be directed to the Tax Assistance Section
of the Comptroller of Public Accounts, Austin, Texas 78744-0100; (512) 463-4600 or toll-free (800)
252-1381. You also may contact tax.help@cpa.state.tx.us.
In lieu of a tax certificate, the certificate of conversion may provide that the converted entity is liable
for the payment of the required franchise taxes.
• Execution: Pursuant to section 4.001 of the BOC, the certificate of conversion must be signed by a
person authorized by the BOC to act on behalf of the converting entity in regard to the filing
instrument. Generally, a governing person or managerial official of the entity signs a filing
instrument.
A certificate of conversion filed by a corporation should be signed by an officer of the corporation,
but it does not need to be notarized (BOC § 20.001).