What does suspension mean?

When an entity is suspended, the company has lost all its rights and privileges and cannot legally operate in the State of California. A suspended business entity is technically not permitted to engage in business transactions as long as the suspension is in place. Additionally, companies in this situation are prohibited from filing or defending lawsuits, may not close real estate or business sales transactions, enforce or enter into new contracts, and may potentially lose rights to their corporate name.

What are my options?
A suspended entity is required to pay all applicable taxes and penalty fees, and file the requisite paperwork, regardless of whether you intend to dissolve the company or resume business operations. In short, your company is frozen and must be revived to active status and in good standing in order to proceed.
Who suspended me?
Business Entities may be suspended by either the Franchise Tax Board (FTB), or the Secretary of State (SOS), or in some cases, by both institutions. Businesses can be suspended for a number of reasons and sometimes those reasons are not made clear. To complicate matters we have had experiences where we have had an “Active” status form from the FTB, yet the SOS rejected the filing because the entity was “FTB Suspended”. Knowing the process and timing for these state agencies helps us get you revived as soon as possible, and what to do in situations like this.
How do I tell?
The suspending agency usually mails notification to the address they have on file. If you’ve misplaced their notice or are unsure of your entity’s status, we can perform a status search with both institutions for you—this search is often completed in the midst of our first conversation with you. Be advised that this is only a preliminary result and does not explain why you’ve been suspended.
Are the FTB and SOS websites accurate?
To a degree, yes. The State websites can provide some valuable information when initially researching your suspension. However, as publicly accessible databases they are not as thorough and more prone to errors than the systems each agency maintains internally.
Can I file an amendment, dissolution, or cancellation while my entity is suspended?

The State will process an amendment to change an entity name while the entity is suspended, but will not process a dissolution or cancellation for a suspended entity.

Do I need to grant you power of attorney in order for your firm to represent us at the FTB/SOS?
In order to fully represent the needs of your company and be successful in it’s getting revived, yes.
What happens to my entity’s name while the company is suspended?

As long as your entity is under suspension, the Secretary of State does not protect your exclusive use of the company’s name. This means that another, newly formed entity may assume the use of the name.

Why are some other companies charging thousands of dollars for revivor services? Can you really accomplish the same thing at a lower cost?

Absolutely. We’re not looking to take advantage of a situation that is already expensive and stressful for our clients. We can’t speak for how other companies establish their fees, but we’re upfront about exactly what our fees and services entail. Although we recently spent two hours and 55 minutes at the FTB reviving an entity that was in escrow, we have not found it necessary to charge $1,000 or more. One of the greatest satisfactions we have in business is when we are finished reviving a client’s entity and we e-mail them writing: “You’re Revived” and call them saying: “You’re Revived”, to hear the sound of excitement in their voice is quite rewarding.

Have More Questions?

Speak to a  specialist.

(916) 947-FILE.