Understanding Si No Change: Reactivating a Suspended Company in California, FTB, Certificates of Good Standing, and More

In relation to the status of your company, you may have heard the phrase “Si No Change” if you own a business in California. What does it mean, though? Simply put, the Spanish phrase “Si No Change” means “Yes No Change” in English. Si No Change, as used in California business law, describes a particular kind of declaration that a business can submit to the state to keep its status as an active entity.

An organization basically informs the state that there have been no changes to its business operations or ownership since it last filed a Si No Change statement. The company must submit this statement every year to maintain its good standing with the state. A business runs the risk of having its license suspended by the state if it submits the statement late or not at all.

What happens then if your business is suspended? This essentially means that your business is no longer regarded by the state as an active entity. Until the company is reactivated, you are not permitted to act on its behalf when conducting business, signing contracts, or carrying out any other actions. You need to file all past-due tax returns and settle any unpaid fines and taxes in order to reactivate a suspended business in California. Once this is finished, you can file a Si No Change statement and a Statement of Information to restore your company’s good standing. In relation to taxes, you may have also heard the abbreviation “FTB” when discussing California business. Franchise Tax Board, the state organization in charge of enforcing California’s tax laws, goes by the initials FTB. Even if they had no revenue for the year, every business operating in California is required to submit tax returns to the FTB.

Finally, you might have questions about who can issue certificates of good standing. A certificate of good standing is a legal document that attests to the fact that your company complies with all state regulations and is legitimate to operate. The Secretary of State’s office in California is responsible for issuing certificates of good standing. The Secretary of State’s office will check that your business has made all necessary filings and payments before issuing the certificate.

In conclusion, comprehension of Si No Change is essential for maintaining your California business’s legal standing. Your company will remain in good standing with the state if you file this statement on an annual basis and pay all taxes due. In the event that your business is suspended, you can reactivate it by submitting past-due returns and statements. And the Secretary of State’s office is where you should go if you ever need a certificate of good standing.