Why is my Limited Liability Company Suspended?
Let’s face it, starting an Limited Liability Company (LLC) may not be the easiest task in the world, but keeping one in “good standing” can be quite the handful. In order for an LLC to be in good standing, you must meet all the filing requirements and payments on an annual basis. And truth be told, some of us get too busy actually running the business that we forget to file and pay all necessary fees. This may lead to your LLC being suspended with the state. Let one of our agents explain to you the process of what it take to revive an LLC in California. Call is at (916) 480-1225!
Your LLC may be suspended by one or both of the two agencies; Secretary of State and/or Franchise Tax Board.
When a Limited Liability Company suspended status, the business loses its rights and privileges to operate legally. An LLC that is suspended is required to close its door and cease all business related activities. Any person who attempts to use the suspended LLC for business purposes may face possible imprisonment, fines or both.
3 Steps to Take
1. Did you File your Statement of Information?
The first question you should ask yourself if your LLC is suspended is whether the Statement of Information filing is up to date or not. LLCs organized and register with the state of California are required to file a Statement of Information with the California Secretary of State. This filing is first due within 90 days of organization and bi annually in the month that the LLC was formed in. This will help update any recent changes within the LLC such as its managers, members, address and etc.
Failure to file this document on time may result to a suspended status along with a $250 penalty fee to the Franchise Tax Board.
2. Did you pay and file your taxes?
The next thing you should ask yourself is whether you have filed and paid all your taxes on time. LLCs are required to pay the minimum yearly tax of $800 to to Franchise Tax Board as well as file their taxes on time.
3. Know which Agency to Contact
Knowing which agency suspended your LLC will be helpful when determining which steps you will need to take to revive an LLC in California. We would advise that you contact us immediately. With our rush services, we will be able to know which agency has your Limited Liability Conpany suspended, thus, help you determine which agency to contact in order to revive your LLC.
If the suspension was issued by the Secretary of State, this means that the LLC did not file its Statement of Information. After the Statement of Information has been approved, the Secretary of State will be able to release the suspension and revive your LLC to be in good standing. Our services at DBS can revive an LLC in California within the shortest time possible by filing your documents in person with expedited (24 hour) processing! Please call us at (916) 480-1225 to start this process!
However, if your LLC had been suspended by the FTB, this typically means that the LLC did not file its taxes and/or pay the yearly minimum tax fee of $800. You will need to contact the Franchise Tax Board to resolve any tax filing issues and/or payment. Once you have resolved the tax issues, you will need to submit an Application for Certificate of Revivor (Form 3557). The Franchise Tax Board will process your application and upon approval, notify the Secretary of State to release your LLC suspension.
Email or Call us at (916) 480-1225 today and find out how we can help revive your LLC in California!