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.

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.

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!