If a legal entity has been “FTB Suspended” with the California Secretary of State 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 business with the same name as your entity and
(ii) your business 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 have any questions.
This blog does not constitute legal advice and does not establish an attorney-client relationship. If you need legal advice, please contact a lawyer directly.