Keep Your LLC Current!!

Are you the manager or the managing member of a California limited liability company? If so, you should be aware of a new program to be implemented beginning in early 2009.

The Franchise Tax Board, working with the California Secretary of State, is currently implementing a suspension/forfeiture process for Limited Liability Companies (LLC's). The FTB will begin to suspend/forfeit the rights, powers, and privileges of LLC's for nonpayment of taxes, penalties, or interest, and/or failure to file a return.

The effect of this program is to quickly alert the Secretary of State to LLC's that are not paying their taxes, penalties and interest to the Franchise Tax Board. These LLC's will more quickly be placed into "Suspended" or "Forfeited" status by the Secretary of State.

The consequence of having an LLC in suspended or forfeited status is costly. Any other party contracting with an LLC in suspended status can have that contract declared VOID and unenforceable! See California Revenue & Taxation Code 17654, 23301.5, 23304.1 and 23305.5.

To check the status of your LLC, go the California Secretary of State's website and type in the name of your LLC here:

http://kepler.sos.ca.gov/list.html

If your LLC is in suspended status, we can help you get it active and avoiding possible legal exposure.

Article Submitted by: Attorney Brooke Pollard