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Bad investment

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burntorange

Junior Member
I invested in an S corporation in Texas in 1998. It seemed like a good idea at the time. The company never made money, in fact it lost money every year. For the last 2 years I did not receive a tax statement for it. So I just assumed that it dissolved. Did not check to be sure though.

Am I liable as a stock holder (1 of about 60) for debts or lawsuits that might be filed against this S corporation now? Is there something that I should do at this time to protect me?
 


S

seniorjudge

Guest
burntorange said:
I invested in an S corporation in Texas in 1998. It seemed like a good idea at the time. The company never made money, in fact it lost money every year. For the last 2 years I did not receive a tax statement for it. So I just assumed that it dissolved. Did not check to be sure though.

Am I liable as a stock holder (1 of about 60) for debts or lawsuits that might be filed against this S corporation now? Is there something that I should do at this time to protect me?
Click to expand...
Start your research by finding out if the corporation is still in existence:

http://ecpa.cpa.state.tx.us/coa/Index.html
 
T

TSRcue

Junior Member
burntorange said:
I invested in an S corporation in Texas in 1998. It seemed like a good idea at the time. The company never made money, in fact it lost money every year. For the last 2 years I did not receive a tax statement for it. So I just assumed that it dissolved. Did not check to be sure though.

Am I liable as a stock holder (1 of about 60) for debts or lawsuits that might be filed against this S corporation now? Is there something that I should do at this time to protect me?
Click to expand...

There is a dissolution procedure. Check this link from the Sec. of state.

http://www.capitol.state.tx.us/statutes/docs/BA/content/htm/ba.006.00.000000.00.htm#6.04.00

Best regards. . .
 
A

atxcoolguy

Member
as a stockholder, you're only liable for what you put in financially. that's if the stocks are real and the corporation is really a corporation. if yo ulose the money, then that's all you'll lose. did you go to mccomb's business school at UT? sure hope not
 
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