Legal Question in Business Law in California

Problem Corporation

Hello, I am a foreign national from India and in 1996 I incorporated a company in SF. I did all the paper work but due to unfortunate circumstances I really did not do any business in SF or the USA under that company's name. I found out recently that the company has been suspended.

Can you please let me know the implications of what I should inorder to revive the company? Also do I need to pay Frnachise tax for all years the company did not do any business? (at the moment too there is zero business under that company name)Please let me know in detail as much information as you can provide since i do want to keep the company alive.

Thank you in advance.


Asked on 3/14/02, 2:00 am

3 Answers from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Problem Corporation

you need to find out why it was suspended. i suspect it for not paying tax. once you corect the problem it should be in good standing again.

Read more
Answered on 3/14/02, 9:37 am
Ken Koenen Koenen & Tokunaga, P.C.

Re: Problem Corporation

There is a minimum tax that must be paid each year to the Franchise Tax Board in California to keep the corporation in good standing. Chances are, you did not pay them.

You will need to pay all back taxes ($800 per year) and possibly some reinstatement fees and possible penalties.

Read more
Answered on 3/14/02, 11:19 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Problem Corporation

The main reasons for suspension of a corporation are failure to pay the minimum annual corporate franchise tax, failure to file franchise tax returns, and failure to file the periodic statement of officers, directors and agent for service of process (Secretary of State Form SO-100).

The first step toward reinstatement is to pay the back taxes and obtain a "Certificate of Revivor" from the Francise Tax Board. If failure to file the SO-100 was the only problem, you can be reinstated after filing the form. See Revenue and Taxation Code section 23305 and Corporations Code section 2205(d), respectively.

Read more
Answered on 3/25/02, 6:46 pm


Related Questions & Answers

More Business Law questions and answers in California