Suspension/forfeiture of Limited Liability Companies (LLC)
PURPOSE OF BULLETIN
To tell staff that the Franchise Tax Board (FTB) and the Secretary of State (SOS) are implementing the Suspension/Forfeiture of Limited Liability Companies (LLCs) process.
Since the creation of LLCs in California, neither FTB nor SOS has implemented the suspension/forfeiture process.
We will begin sending out pre-suspension notices in the fall of 2008.
The suspension/forfeiture process for LLCs will be very similar to the suspension/forfeiture process for corporations.
LLCs will be suspended or forfeited for failure to file or failure to pay.
They will be subject to the normal penalties including contract voidability. However, they will not be subject to the Suspended/Forfeiture; Failure to File Penalty ($2,000 Penalty).
The LLC revivor process will be similar to the corporation revivor process. They will be required to file all returns, pay all balances due, and file a request for revivor.
Unit procedures are being created and will be available before the suspension/forfeiture process begins.