November 22, 2020

California Franchise Tax Board

California Franchise Tax Board hey what's everybody this is attorney Dan x-wind coming at you share it a little bit of information about corporations and what happens if you don't maintain good, standing with the California Secretary of State now cooperation can be suspended usually two ways the first one if it's secretary of state suspended which means you, have found your annual or biannual statement of information by annual if your LLC annual if your corporation and you're supposed.

To fill this out and file it every year it's really. Easy just go on the California Secretary website and now you can file them electronically at least for the corporations and they can.

Ask for you like current company address give me your officers directors, and addresses what business you're doing and and I think that's pretty much it but a lot of people forget to do this every year and what happens is every year you.

Forget to do it there's more you're gonna end up in suspension. I recently looked up one I didn't found one for like ten years and so to get.

It out of franchise secretary suspense you just gotta file a new one but usually he's pretty easy go the other way is actually the other suspension, is Franchise Tax Board suspension which means usually you haven't paid your annual franchise. Tax each year which is $800 do every March 15th and if you have a short year about 4 years and 15 days after you start your company so you have to pay this one every.

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Year and if you don't you will get suspended by the Franchise Tax Board and it'll show up as a suspension on, the California Secretary of State now what happens if your company is suspended right its first think about how to get out of suspension as fast as you can because you lose a, lot of rights and privileges if you are second to sorry franchise tax were suspended right you lose your right to use, the business name another. Business come in and use the name and then you'd have to come and saw a new business or with a different name you, cannot initiate or defend lawsuits or enforce your your contracts but the other parties can enforce the contracts against you and and that that means, like you have to get your company at a suspension first before defending the lawsuits and you can't you lose a lot of like enforcement rights if, you are California franchise tech.

Pancho's Tax Board suspended so it's really important to calendar that March 15th date and payment set aside, the necessary money to do so because it's it's you lose a lot of things if you are secure to stay suspended so get that on your system set aside that.

You know dollars every year to pay that so you don't you, use your rights and maybe your business all right so this is attorney dnx with coming at you okay your $800 and your franchise tax every year when it's due and, I'll talk to you later .

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