Need to Revive a Suspended California LLC Within 7 Days! Call: 323-952-7002.
When a California LLC is suspended, the LLC cannot legally operate. Technically, the LLC is required to stop all business and to close its doors until the suspended California LLC is revived. My office works with a licensed California attorney to help get your suspended California LLC revived quickly. With the assistance of a California attorney, we will contact the relevant taxing authorities and state offices to find out what is needed to revive your suspended California LLC within 1 business day, or 24 hours. Once that has been determined, I can typically prepare the needed tax returns and other required documents for your signature within 2 business days, while the attorney tends to any other corporate matters that must be addressed on an expedited basis.
Why a California LLC Becomes Suspended.
Either the California Secretary of State's office and/or the Franchise Tax Board (FTB) can suspend a California LLC. Every California LLC (even if no business is being conduction) must file an annual Statement. If you file to timely file the annual statement, interest and penalties up to $700 may be assessed, assigned to collections, and the LLC can be suspended. In addition, every California LLC, even if it is not doing any business, is required to file an annual tax return with the Franchise Tax Board and to remit payment of at least the $800 minimum franchise tax.
The Franchise Tax Board will issue a delinquent penalty for failure to file a timely tax return. The penalty, which is in addition to interest that may be owed, is 5% per month up to a maximum of 25%. Interest begins on the original due date of the tax return. The Franchise Tax Board may also issue a demand penalty of up to $2,000 when a LLC fails or refuses to furnish information requested by it or fails to file a tax return after written notice and demand.
Effects Of Suspension.
When a California LLC is suspended, the LLC cannot legally operate. A suspended California LLC cannot use its bank account, take out a loan, renew health insurance, or sell or transfer its assets. A suspended California LLC cannot sue, or defend, any action in court. For a suspended California LLC to once again achieve good standing, the suspended California LLC must be revived.
Until the California LLC corrects its suspended status, the LLC will be prohibited from transacting business, filing a lawsuit, answering a lawsuit filed against it, closing an escrow, initiating litigation, or protecting and preserving its name. See, Timberline, Inc. v. Jaisinghani, 54 Cal.App.4th 1361 (1997).
How To Revive or Reinstate a California Suspended LLC.
If your California LLC is suspended, and you to get it revived quickly we can help. To find out what documents need to be filed and how much you owe based on the minimum tax is just $500 and we can get you this information in typically 1 business day. If you have a C LLC, or are in collections, this process will have to be done twice as the Franchise Tax Board will not compute the penalties and interest owed until the net profit has been determined. The preparation of your tax returns can then proceed and for this my office will typically try to provide you with a flat fee based on the number of tax returns that must be prepared.
Two Common Problems When Trying To Revive a Suspended California LLC.
When a California LLC has been suspended, another individual or entity may take the "suspended" LLC's name. Although you may love your corporate name, when this occurs you will have to change the corporate name and we work with attorneys to help facilitate this on an expedited basis.
A second common problem faced by a suspended California LLC is time. My office with the assistance of a California attorney can perform an in person walk through reviver to get the suspended California LLC revived (back to Active status) within 3 to 5 business days.
Real Cost of Suspension.
For $500 we will find out everything that is needed to revive your suspended California LLC within 1 business day. We can thereafter get all of the needed documents prepared for your signature typically within 48 hours.
The cost of the full reviver, however, varies depending on the number of tax returns that need to be prepared. On average a suspended California LLC will spend about $125-$250 per state tax return and an additional $2,500-$4,000 on the walk-through reviver itself which takes 1-2 full days.