Co-author: Tim Fandrey
A corporate client of the firm was recently sued for breach of contract and other violations. However, the company manager found himself facing a personal liability allegation for the company debts. Why? The petition claimed that personal liability was warranted because the company failed to file a timely Texas franchise tax report. This failure meant the company forfeited its corporate privileges from the day after the franchise tax report was due until the date when the report was filed and any associated tax liabilities were paid. However, can this simple failure cause personal liability against the officers and directors for the debts of the corporation?
Continue Reading Missing Annual Franchise Tax Reports Can Have Big Consequences