Tax Strategy, CFO Insights & NIL Finance for Founders and Athletes

A forfeited Texas business can keep the lights on but cannot sue, cannot defend itself in court, and exposes its owners personally on every new contract, lease, and loan signed while forfeited. Here is exactly what still works, what breaks activity by activity, and how to make the pause-or-push decision until your reinstatement is complete.

Under Texas Tax Code Section 171.255 directors and officers can be held personally liable for debts incurred after the missed report due date, not the day the state stamped forfeited. Reinstatement closes the window but does not erase debts already inside it. Here is the exact timing, who is covered, which debts count, and what to do right now.