What Happens When Your Business is FTB Suspended in California?
A business entity can (and will) become FTB suspended if it fails to file tax returns or pay required taxes. Likewise, the Secretary of State’s (SOS) office may suspend a business for missing its Statement of Information filing. Either state agency has the authority to impose a suspended – FTB or suspended – FTB/SOS status on a company.
During a suspension, a company loses its ability to legally conduct business. It cannot enter or enforce contracts, defend itself in court, or engage in essential business activities. An FTB suspended company is also blocked from buying or selling real estate, filing for extensions, or requesting tax refunds. Non-profits risk losing their tax-exempt status during a California FTB suspended period. Additionally, businesses may be unable to close or dissolve legally and could even lose the rights to their corporate name at the Secretary of State.
Business Revival Under California FTB Regulations
To Reinstate or Revive a Business it must satisfy all requirements set by both the FTB suspended California and SOS. Typically, this means paying all overdue taxes, plus any accumulated penalties and interest. Missing tax forms must also be completed and signed by an authorized representative, such as a corporate officer or, in the case of an LLC, a managing member.
Revivor requirements vary by case, making the process frustrating and unpredictable. Many business owners are unfamiliar with the FTB’s system, and revivor requirements frequently change. Accurately determining the steps needed for a suspended FTB revivor can be a challenge.
That’s where we come in! FTB Revivors, a division of SOS Filings, Inc., specializes in navigating the FTB suspended and SOS revivor process. Every day, our team works directly with both agencies to lift suspensions efficiently. Resolving an FTB suspended CA status is often more complex and expensive than addressing an SOS suspension, but we handle both. Our representatives visit state offices in person, spending hours at the Franchise Tax Board suspended counter to ensure we obtain a full and accurate list of revivor requirements.
Once clients provide the required documents, we take over the process entirely, allowing them to focus on running their businesses. With our walk-through revivor service, some suspensions can be lifted in just one business day (available with our gold or platinum packages).
Get Your Suspended LLC Back in Business Quickly
If your LLC Suspended status is preventing you from operating, or you’re searching for answers on how to reinstate a suspended entity, we provide the expertise to resolve the issue quickly and effectively. You might be asking, “If LLC says suspended, can you reopen?” The answer is yes! Contact us today, and we’ll walk you through the steps to regain good standing.
