The California Secretary of State's record shows my limited liability company's (LLC) status as suspended/forfeited. How did this happen?
If an LLC does not file Form 568 and/or does not pay all tax, penalty, or interest due, then its powers, rights, and privileges may be suspended (domestic LLC) or forfeited (foreign LLC). Also, any contracts entered during suspension or forfeiture are voidable at the request of any party of the contract other than the suspended or forfeited LLC. Such contracts will remain voidable and unenforceable, unless the LLC applies for relief of contract voidability and the Franchise Tax Board grants relief. See Revenue & Taxation Code Sections 23301, 23305.1, and 23305.2 for more information.
Did you find this article helpful?
Haven't found what you're looking for, send us an email