Don't get suspended as a California business entity!
The California Franchise Tax Board suspends or forfeits business entities when they fail to:
• File a return.
◦ Penalties, which includes the Secretary of State penalty.
◦ Fees such as collection, filing enforcement, lien, sheriff, or exempt.
Suspended business entities lose their rights, powers, and privileges to conduct business in California. Business entities registered with California Secretary of State must file and pay at least $800 franchise or annual tax from their incorporation date to current, regardless of business activity.
Suspended or forfeited business entities cannot:
• Legally transact business.
• Bring an action or defend itself in court.
• Receive an automatic extension of time to file.
• File a claim for refund.
• File or maintain an appeal before the Board of Equalization.
• Begin or continue a protest.
• Legally close or dissolve the business.
• Maintain the right to use their name.
◦ California Secretary of State denies our revivor requests if the entity name is no longer available.
• Retain tax-exempt status.
◦ We revoke an organization’s tax-exempt status as of the suspension date.
Suspended or forfeited business entities are subject to a $2000 penalty per tax year for failure to file missing tax returns within 60 days after receiving a written demand to do so. Shareholders that allow a business entity to suspend instead of legally dissolving it may, under certain circumstances, become personally liable for taxes it owes.
If you're suspended, let me revive you! firstname.lastname@example.org