What Happens When Your Business is FTB Suspended in California?
A business entity can 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 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 if they are FTB suspended period. Additionally, businesses will be unable to close or dissolve legally and could even lose the rights to their corporate name with the Secretary of State.
Business Revival Under California FTB Regulations
To reinstate or revive a business, all requirements set by both the Franchise Tax Board and Secretary of State must be fulfilled. Typically this means paying all overdue taxes as well as any penalties and interest. Missing tax forms must also be completed and signed by an authorized representative such as a corporate officer or a managing member (in the case of an LLC).
Revivor requirements vary case by case which can make the process frustrating and unpredictable. Many business owners are unfamiliar with the FTB’s system and revivor requirements frequently change. It can be difficult to determine the steps needed to revive an entity.
That’s where we come in! FTB Revivors, a division of SOS Filings, Inc., specializes in navigating the FTB and SOS revivor process. Every day, our team works directly with both agencies to lift suspensions efficiently. Resolving an FTB suspended status is often more complex and expensive than addressing an SOS suspension, but we are able to handle both. Our representatives visit state offices in person, spending hours at the Franchise Tax Board 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 and allow you to focus on running your business. With our walk-through revivor service, some suspensions can be lifted in just one business day (available with our gold or platinum packages).
