An LLC may be suspended for a number of reasons. The California Secretary of State Office and the Franchise Tax Board are the two main bodies responsible for LLC suspension. LLCs are required to file annual Statement of Information forms to the Secretary of State. They are also expected to pay specified taxes and fees on time. When these are not submitted in a timely matter, the LLC can become suspended.
Now that my LLC is suspended, what will happen to my business?
When an LLC becomes suspended, it is no longer in good standing with the state of California. The LLC is no longer allowed to be in business. It is stripped of its rights and privileges. This means it can not legally operate. In addition, the company cannot sue or be sued for non-paid agreements. Lastly, other companies could possibly assume your business name. This is why its very important to revive your LLC in CA in a timely matter.
How do I revive my LLC?
When reviving an LLC in CA, you will be required to pay all the dues and penalty fees as well as submit a Statement of Information. If you mail this to the Secretary of State office, it could take 3-5 months before your company is restored to active operations! Who has that much time? This may adversely affect your operations and clients will definitely be lost during that period. This is why companies such as Diversified Business Solutions are very handy in these situations. We will personally hand deliver your documents to the Secretary of State in order to ensure your corporation is back to active status within a desired time frame.
Usually, the LLC is required to perform another name search. This is because suspension allows your name to be up for grabs. Thus, other businesses can assume the name of your company. If your business name has been taken, you will need to change the name by filing new amendments of your articles. Diversified Business Solutions is experienced at helping LLCs through the revival process.
What precautions can I take to keep my LLC from getting suspended?
Many people don’t realize that keeping an LLC in good standing is quite simple and easily preventable. Here are two key ways to keep your business in good standing with the state of California:
1. The business must stay up to date with Statement of Information flings, which are due biannually in the month of incorporation.
2. The business must pay all necessary taxes and fees with the Franchise Tax Board on time.
Diversified Business Solution is here to help with both reviving an LLC in CA and keeping your LLC in good standing. Again, we personally hand deliver documents to the California Secretary of State and pick them up as soon as they are processed. After, we will email you copies of the documents prior to mailing out the originals. If you have any questions regarding any step of the revival process, do not hesitate to call us at (916)-480-1225. For more information about corporations and running a business, visit us on Facebook at https://www.facebook.com/SecretaryOfStateFiling.