A corporation may be suspended for a number of reasons. The California Secretary of State Office and the Franchise Tax Board are the two main agencies involved in a corporation suspension. Corporations are required to file annual Statement of Information forms with the Secretary of State. They are also expected to pay specified taxes and fees on time. When these are delayed or absconded, the corporation can get suspended.
What are the consequences of getting suspended?
When a corporation becomes suspended, it is no longer in good standing with the state of California. The corporation is not allowed to be in business. It is stripped of its rights and privileges, which means it can not legally operate. In addition, the company cannot sue or be sued for non-paid agreements. Lastly, other companies could possibly assume your business name. This is why its very important to revive a corporation in California in a timely matter.
How do I revive my Corporation?
To revive a corporation in CA, you will be required to pay all the dues and penalty fees as well as submit a Statement of Information. If you mail this to the Secretary of State office, it could take 3-5 months before your company is restored to active operations! Who has that much time? This may adversely affect your operations and clients will definitely be lost during that period. This is why companies such as Diversified Business Solutions are very handy in these situations. They will personally hand deliver the documents to the Secretary of State in order to ensure your corporation is back to active within a desired time frame.
Usually, the corporation is required to perform another name search. This is because suspension allows other people to assume the name of your company. If the name has been taken, the suspended company will need to change its name by filing new amendments of their articles. Diversified Business Solutions is experienced at helping corporations through revival process.
How can I keep my corporation from getting suspended?
Suspension of your corporation is easily preventable. There are two key ways to keep your business in good standing with the state of California:
1. The business must stay up to date with Statement of Information flings, which are due annually in the month of incorporation.
2. The business must pay all taxes and fees with the Franchise Tax Board on time.
Diversified Business Solution is here to help you revive a corporation in CA and keeping your corporation in good standing. We personally hand deliver documents to the California Secretary of State and pick them up as soon as they are processed. After, we will email you copies of the documents prior to mailing out the originals. If you have any questions regarding any step of the revival process, do not hesitate to call us at (916)-480-1225. For more information about corporations and running a business, visit us on Facebook at https://www.facebook.com/SecretaryOfStateFiling.