What does it mean to be “FTB Suspended?”

By: Doug Bend

If a legal entity has been “FTB Suspended” it was suspended by the California Franchise Tax Board most likely because the company did not pay its annual franchise tax.

There are two potential problems with being FTB Suspended:

(i) Someone could register a new entity name as the same name as your entity and… 

(ii) you might not be provided with any liability protection if a cause of action arises while your entity is suspended.

The best way to lift the suspension is to file a Statement of Information with the California Secretary of State’s Office and to work with a CPA to get your corporation squared away with the California Franchise Tax Board.

You can read more about what it means to be FTB Suspended and how to revive a suspended legal entity here.

Please do not hesitate to contact us if you’d like a recommendation for a CPA or if you have any questions.

Disclaimer: This article discusses general legal issues and developments. Such materials are for informational purposes only and may not reflect the most current law in your jurisdiction. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. No reader should act or refrain from acting on the basis of any information presented herein without seeking the advice of counsel in the relevant jurisdiction. Bend Law Group, PC expressly disclaims all liability in respect of any actions taken or not taken based on any contents of this article.