Q: I have a company registered 25 yrs ago but never used it. it is now in suspension. how can i restore it?
A:
Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.
If a California corporation fails to file tax returns with the California Franchise Tax Board ("FTB") and pay the related FTB taxes, or the corporation fails to file annual statement of information with the California Secretary of State, the entity will be suspended. In order to revive such a corporation, you will need to do all the following:
(1) file FTB returns for all the missing years;
(2) pay FTB the franchise tax for each year not paid, as well as accrued interest and penalties on them;
(3) pay accrued penalties to the California Secretary of State; and
(4) submit an application for entity's revival.
You also need to take into account your CPA and attorney fees for preparing the paperwork. For an entity that has been suspended 25 years, your total cost may be well over $30,000. Therefore, unless there is a strong reason for reviving the defunct entity, you may consider forming a new entity instead. Be sure to consult your own attorney to protect your legal rights.
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