Most likely, your status has been revoked because you have not kept your routine paperwork current with the Secretary of State. Many states require an annual informational filing to keep their records current. In some states, your status can be revoked for nonpayment of corporate taxes as well. Typically, late fees and/or fines can result from not keeping all corporate paperwork current.
What effect does this have on my company?
A suspended corporation loses all rights and privileges until it is revived. The company is disqualified from doing business until it corrects its status with the agency that suspended it. In other words, a company is not supposed to be engaged in any transactions when it is not in good standing. There can be serious monetary and legal consequences for corporations that are suspended. Additionally, your corporate name can be taken by another company for their use.
It is a good idea to regularly examine your company’s compliance with filing obligations in order to avoid revocation of corporate status.
How can I get my company back in “good standing?”
As long as your company is not either listed as ‘dissolved’ or ‘administratively dissolved,’ your company can be revived. Companies that have a status listed as either ‘default’ or ‘suspended’ can be revived.
However, the process can be time consuming and confusing; for this reason many companies choose to use PCF to aid in the reinstatement process.
In California, when your company is not in good standing, your name is not protected. As such, the only document that can be filed with the Secretary of State while your company is suspended is a name change amendment.
