Month: May 2015

Posted By on May. 2nd 2015

Why does the “active” status of a California corporation get suspended, and how is this avoided?

The right to conduct business as a corporation in California is considered a privilege which can be forfeited or suspended. When the State of California suspends a California corporation’s “active” status it is more often than not because either:The corporation failed to file its Annual Information Statement with the California Secretary of State; and/orThe corporation failed to pay its $800 annual minimum franchise tax to the California Franchise Tax Board.Once suspended, a California corporation is adve..