California Corporate Reinstatement
Our clients constantly come to us with two main questions: “Why am I suspended with the Franchise Tax Board?” And “How do I revive my business?” When a California business is suspended, the entity has lost all its rights and privileges and cannot legally operate until the corporation or LLC has been reinstated. During this suspension period, the entity is required to close its doors and stop all business related activity. In order to once again achieve good standing, the business must be revived.
There are several reasons why a California entity may be suspended. In order for a business to stay in good standing, the business must be registered with the California Secretary of State's office, assigned …show more content…
A problem faced by suspended business entities in California is determining exactly what is owed as there is no set regulation and each FTB agent may calculate the penalties in a different manner. The suspended party must file all delinquent tax returns and statements, pay all applicable taxes, penalties, interest and fees, and file an application for a "certificate of reviver" with the FTB in order to be reinstated.
Before the business can be revived, the FTB will have to check with the Secretary of State to make sure everything is ready to be in good standing. However, this also leads to another common problem. When a business has been suspended in California, another individual or entity is free to assume the "suspended business’" name. When this occurs, unfortunately to finalize the reviver process you will have to select a new business name, prepare business minutes authorizing the entity to change its name, and also prepare and file amended Articles of Organization with the Secretary of State.
The process to revive your business can be long and tedious, especially if you do not know what is required of you. For more information, check out our Reinstatement page or feel free to call us toll-free to help you with the
Our clients constantly come to us with two main questions: “Why am I suspended with the Franchise Tax Board?” And “How do I revive my business?” When a California business is suspended, the entity has lost all its rights and privileges and cannot legally operate until the corporation or LLC has been reinstated. During this suspension period, the entity is required to close its doors and stop all business related activity. In order to once again achieve good standing, the business must be revived.
There are several reasons why a California entity may be suspended. In order for a business to stay in good standing, the business must be registered with the California Secretary of State's office, assigned …show more content…
A problem faced by suspended business entities in California is determining exactly what is owed as there is no set regulation and each FTB agent may calculate the penalties in a different manner. The suspended party must file all delinquent tax returns and statements, pay all applicable taxes, penalties, interest and fees, and file an application for a "certificate of reviver" with the FTB in order to be reinstated.
Before the business can be revived, the FTB will have to check with the Secretary of State to make sure everything is ready to be in good standing. However, this also leads to another common problem. When a business has been suspended in California, another individual or entity is free to assume the "suspended business’" name. When this occurs, unfortunately to finalize the reviver process you will have to select a new business name, prepare business minutes authorizing the entity to change its name, and also prepare and file amended Articles of Organization with the Secretary of State.
The process to revive your business can be long and tedious, especially if you do not know what is required of you. For more information, check out our Reinstatement page or feel free to call us toll-free to help you with the