If you run a business in California, you may have experienced a circumstance where the Franchise Tax Board (FTB) halted your enterprise. This can occur if you don’t submit your taxes on time or pay the required fees, and it could have major repercussions for your company. An FTB suspension can be lifted, though, so you can restart your company. We’ll go over the procedures you need to follow to get your FTB suspension lifted in this post, along with certain questions pertaining to LLC status, business activities, domestication, and statutory conversions.
Step 1: Determine the cause of the suspension Finding out the primary cause of your company’s FTB suspension is the first step in lifting it. If you’re confused about anything in your suspension notice, you can consult the FTB’s website or get in touch with them personally. Failure to file tax returns, pay taxes or fees, and fail to keep a registered agent are common causes of suspension.
Once you are aware of the cause of your suspension, you must take action to resolve the problem. This could entail submitting past-due tax returns, paying back taxes and fees, or amending the details of your registered agent. Depending on the cause of your suspension, the FTB may want further information or documents from you.
You can ask for the status of your company to be reinstated once you’ve fixed the problem. You can submit a paper request form or do it online through the FTB’s website. If there are problems with your request, the reinstatement procedure could take longer than the usual 6 to 8 weeks.
The FTB ought to notify you that your company’s status has been restored once your reinstatement request has been handled. Additionally, you can access the FTB website to check your status online. Before engaging in any business operations, it’s crucial to confirm that your status has been restored because doing so while your status is still suspended might lead to additional fines and repercussions. Related questions include:
Through the Secretary of State’s Business Search service, you can determine your LLC’s current status in California. To view your LLC’s current status and any connected filings or papers, just enter its name or file number.
You can use the Secretary of State’s firm Search tool to find out if a firm is still operating in California in a manner similar to checking the status of an LLC. To view the company’s current status and any pertinent filings or documents, enter the company name or file number.
Yes, domestication of an LLC—the act of moving an LLC’s domicile from one state to another—is permitted in California. However, this procedure can be complicated and may need for the support of a lawyer or other expert.
No, statutory conversions—the act of changing a business entity from one kind to another (for example, from a corporation to an LLC—are not now permitted in California). California does, however, permit further types of business restructuring and reorganization.