California Business Portal

My business has a Franchise Tax Board (FTB) lien. What effect will a lien have?

Lien Facts:                                                                                                          
  • A lien is a legal claim to secure a debt. It may delay or prevent you from certain transactions such as buying or selling property. 
  • Becomes public record—For a business entity, FTB will file a Notice of State Tax Lien with the California Secretary of State (Government Code Sections 7171 and 7220). 
  • Effective for 10 years or more—Once a lien is recorded, the lien continues in effect for 10 years, unless extended for an additional 10 years (California Government Code Section 7172(b)).
  • Attaches to property—A lien attaches to any California real or personal property your business owns or have rights to. 
  • Impacts your credit—A lien negatively impacts your credit. It may prohibit your ability to purchase, sell, refinance, or transfer real property, along with securing loans for other assets or debts. 

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