Steve Sims EA llc


Announcements and Updates

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.

    •    Pay

    ◦    Taxes.

    ◦    Penalties, which includes the Secretary of State penalty.

    ◦    Fees such as collection, filing enforcement, lien, sheriff, or exempt.

    ◦    Interest.

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!