My Corporation Has Been Suspended by the State of California What Do I Do?

My Corporation Has Been Suspended by the State of California What Do I Do? So the first thing is if your corporation has been suspended you've probably got some sort of notice and or you went to the California Secretary of State website notice that your corporation was suspended and there's a listing for it so number one, if you have a corporation in California that means you took the steps to create that corporation or this can be for an LLC or partnership just gonna use corporation down to shortly the nomenclature so if you have a corporation California registered with the Secretary of State then there's generally two reasons why corporations get suspended one is the failure to file a statement of information? So a statement of information is a record that you keep on a yearly basis with the Secretary of State just saying here's my corporation here's the address the corporation here's who the officers are if you haven't changed any of these things from year to year you can literally file this form online cost you 25 bucks and it's like filling in a post card it's.

The easy is one of the easiest things to fill out if your corporation has changed and even if it hasn't though you're still required to file the statement of information on a yearly basis so filing this different statement of information can give you a really quick fix in order to get your corporation out of suspension alternatively the reason that most corporation forgets is because of unpaid taxes so when you owe income tax to the Franchise Tax Board where you owe your franchise fees the $800 you pay every year for the privilege of doing business in California if you don't pay those fees then the FT B will suspend you the nice thing is if you go on the California Secretary of State's website it will tell you whether it's SOS Secretary of State's suspended or FTP suspend so it'll just give you a lead on who the right person to call is if you get a situation with the FTB the FTB is going to demand that all the backpack taxes get paid before the corporation is allowed to be back in good standing so if you owe a significant amount of liability for back taxes with a suspended corporation then you might want to get an attorney involved to negotiate a resolution so we've had a lot of issues with suspensions of corporations on certain things so for example if you're going through a transaction or if you're engaged in active contracts and incorporation could suspend it suspended entities can create a lot of problems so the best thing that you can do is try and ferret out the reason why you were suspended and then get somebody involved or deal with the situation appropriately in order to get a resolution.

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Sam Brotman, JD, LLM, MBA

Owner and Director of Legal
Brotman Law

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