Let’s be realistic, starting a corporation may not be easy, but making sure that it is in “good standing” is a whole other story. You must be current and meet all your state filing requirements and tax payments to be in good standing. And to be honest, many of us are actually too busy trying to make the business work that sometimes, we forget to file and pay all necessary fees. This may result to a suspended or forfeited status. Let Diversified Business Solutions, Inc. help you revive your corporation. Call us at (916) 480-1225!
Your Corporation may be suspended by one or both of the two agencies; Secretary of State and/or Franchise Tax Board.
When a corporation is suspended in California, , the business loses its rights and privileges to conduct business legally. Any person who attempts to use the corporation for business purposes while not in good standing may face possible fines, imprisonment or both.
Is the Statement of Information current?
The first thing you should check is to see how current your Statement of Information filing is. Corporations formed and registered with the state of California are required to file Statements of Information. This initial filing is first due within 90 days of formation or registration and annually in the month that the corporation was formed in. Filing s Statement of Information will update any recent changes within the corporation such as its officers, directors, address and etc.
Failure to file this form on time may result to a suspended status along with a $250 penalty fine to the Franchise Tax Board.
Please click here is you would like more information on Statement of Information filing.
Did you pay and file your taxes?
The second thing you should check is whether you have filed and paid all your state taxes on time. Corporations are required to pay the minimum yearly tax of $800 to the Franchise Tax Board. They are also required to file their annual tax returns on time.
Know which Agency to Contact
Knowing which agency suspended your corporation will be helpful to determine which steps you will need to take to revive a corporation in California. We advise that you contact us immediately. With our expedited services, we will be able to confirm which agency suspended the corporation and help.
If Secretary of State suspended the corporation, it means that you need to file an updated Statement of Information. After they file the Statement of Information, the Secretary of State will be able to lift the suspension and revive the corporation to be in good standing. Our services can revive a corporation in California within the shortest time possible by filing your documents in person with expedited (24 hour) processing! Please call us at (916) 480-1225 to start this process!
However, if the Franchise Tax Board suspended your corporation, this typically means that the corporation did not file its taxes on time and/or pay the annual minimum tax fee of $800. You will need to contact the Franchise Tax Board directly to resolve any tax filing issues and/or payment. Once you have resolved the tax issues, the FTB will ask you to submit an Application for Certificate of Revivor (Form 3557) to them. The Franchise Tax Board will process the application and notify the Secretary of State to release your suspension. Only the agency responsible for suspending the corporation can revive the entity back to good standing.