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How to Reinstate an FTB Suspended Corporation or LLC in CA

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).

What Does It Mean When a Business is FTB or SOS Suspended?

The California Franchise Tax Board (FTB) can and will suspend a business entity for failing to file one or more years’ tax returns or for nonpayment of taxes. Similarly, the Secretary of State‘s (SOS) office can also suspend a corporation or an LLC for failing to file their requisite Statement of Information (SI). Either or both agencies can suspend a business.

Consequences of Business Suspension in California

When this happens, a company cannot legally transact business, enter into or enforce contracts, or defend itself in court for the duration of the suspension. FTB suspension stops companies from buying or selling real property and filing for extensions or refunds. Non-profit companies lose their tax exempt status. Suspension also stops companies from legally closing or dissolving and may lose their corporate name rights at the Secretary of State.

Revivor Requirements: Reinstating Your Business

In order to reinstate or revive the company, they must meet all of the Franchise Tax Board’s and Secretary of State‘s Revivor Requirements. Generally, these include full payment of all delinquent taxes in addition to any penalties and/or interest accrued since the company was first suspended. If any tax forms are missing for a year, an authorized representative must complete and sign them. An Officer of the corporation or Managing Member of an LLC usually handles this task.

California non-profit charity organizations must show a “Current” status with the Attorney General’s Registry of Charitable Trusts. We now work closely with the Attorney General’s office to help delinquent charitable clients regain current status. We help restore the entity to good standing and lift suspensions from the Franchise Tax Board and Secretary of State’s office.

Revivor requirements vary by suspension and company. Getting a complete, accurate account of each revivor’s individual requirements is often frustrating for most people, as they are not familiar with the Franchise Tax Board’s system and policies, and the requirements themselves can change daily.

How FTB Revivors Can Help

That’s where we come in. FTB Revivors, a division of SOS Filings Incorporated, facilitates the revivor and filing process for our clients. We provide daily services at both the Franchise Tax Board and the Secretary of State. Lifting a Franchise Tax Board suspension is often more involved and more costly than resolving a Secretary of State suspension, but we accomplish both. Our staff goes to each agency in person on our Client’s behalf, sometimes spending hours at the counter with the State’s representative to ensure we get the full list of required forms and outstanding fees.

Once we obtain the requirements and our Clients provide us with the unfiled forms and/or unpaid fees, they can rest easy knowing the staff of FTB Revivors will administer the Application of Revivor process for them at the counter until their Franchise Tax Board suspension is lifted. With a qualifying Walk-Through Revivor service (available with our Gold or Platinum Packages), we’re even able to lift some suspensions in one business day!

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