Overview of Forfeited Charter
A "revoked" or "forfeited charter" means an entity failed to comply with franchise tax laws. It is barred from doing business in the state. These entities may be reinstated after paying outstanding taxes and penalties. Their names are still protected.
Reinstatement and Requirements
Entities whose charter or permit authority was declared forfeited can be fully reinstated.
Key Points
- Most franchises require a one-time fee to secure the agreement.
- Forfeiture is a civil consequence of violating the law. No criminal conviction is required.
- With forfeited shares, shareholders lose any possible gain.
Property and Tax Implications
- Suspended, forfeited or canceled LLC names cannot be used.
- Property tax forfeiture means the state takes property ownership if taxes are not paid.
- Property taxes become due January first the next year.
Cost and Procedures in Texas
- Reinstating an LLC in Texas costs seventy-five dollars.
- Congress has chartered banks, enterprises, and corporations since seventeen ninety-one.
Consequences and Resolution
- Failing to file returns or pay fees causes forfeiture.
- Reinstatement in Texas is automatic once filings and fees are paid retroactively.
- Owners become trustees and can be sued. A forfeited LLC cannot appear in court.
- In Texas, an entity may lose its charter for not paying tax. To revive a forfeited corporation, file form eight oh one.
Impact of Forfeited Corporation
When a Texas corporation is forfeited, it cannot conduct business. Shareholders may be liable for debts, but the corporation itself no longer exists. This can happen if taxes or offenses are not addressed. One may still sue shareholders but not the corporation.
Additional Question: Company Listed as Forfeited
A "revoked" or "forfeited charter" means an entity failed to comply with franchise tax laws. It is barred from doing business in the state. These entities may be reinstated after paying outstanding taxes and penalties. Their names are still protected.