Legal Question in Business Law in California

Active, but dormant CA LLC

I have a CA LLC which was registered years ago, but no business was ever conducted and no annual reports or fee payments made. Is it possible to just pick up from here, pay the initial franchise fee and basically start business now? Or should another entity be registered and this one dissolved (or just let it lapse)?


Asked on 3/02/08, 5:58 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Active, but dormant CA LLC

The LLC may not be in "active" status any more; the Sec. of State usually puts them in "suspended" status after a few years of no tax payments and no reports. The fee to form a new LLC is $70. To revive a suspended LLC, the minimum franchise tax of $800 a year would have to be paid for each year it was not paid, right back to the year of formation. Under these circumstances, I think most business owners would start over. I think it may even be possible to re-use the former name; at least I have been able to form corporations for clients using the name of a long-suspended corporation.

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Answered on 3/02/08, 6:53 pm


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