California Business Portal

What are the effects if my business entity is suspended or forfeited?

What are the effects if my business entity is suspended or forfeited?

Suspension or forfeitures are public information and affect a business in many ways, the business: 
  • Loses its rights, powers, and privileges to conduct business in California.
  • Loses the right to use its business name in California. In turn, another business could register with the suspended or forfeited business' name, and the name would then belong to the other business.
  • Cannot initiate lawsuits, defend itself against lawsuits, or enforce its legal contracts. But, other parties can enforce their terms in these contracts.
  • Can never enforce contracts entered while suspended or forfeited, unless it obtains relief of contract voidability.
  • Loses the right to get an extension to file a tax return.
Call the Franchise Tax Board for assistance: 
Business entities inside the U.S. 888.635.0494 
Corporations outside the U.S. 916.845.7033 
Limited liability companies outside the U.S. 916.845.7166 
Partnerships outside the U.S. 916.845.7165 

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