A “SOS/FTB Suspended” designation means the business entity has been suspended by the California Secretary of State. A “suspended” business entity loses powers, rights, and privileges within California.
Reviving a Suspended Entity
To lift a suspension, one must handle filings at both the Franchise Tax Board (FTB) and the Secretary of State (SOS). A corporation suspended by the FTB can be revived by filing an Application for Revivor on FTB Form 3557. One can call the FTB Revivor Unit at 888-635-0494 to find out what is required for revivor. Please note that a suspended California corporation is forbidden from entering into a contract.
Suspension Reasons and Penalties
FTB Suspended or FTB Forfeited occurs when a business entity fails to meet tax requirements. Similarly, SOS suspended or forfeited happens when the required Statement of Information is not filed. If an entity is suspended or forfeited by SOS, they may impose a $250 penalty.
How to Check Your LLC Status
- Check online through the Secretary of State’s website.
- Call the Secretary of State’s office.
Please bear in mind, it is possible to be suspended or forfeited by both SOS and FTB concurrently.