As a small business, one of the most challenging parts of corporate management stems from keeping your business afloat. When you don’t make tax payments and when you allow things to pile up, you can soon have your Corporation Status revoked by the state. This can mean that your business is no longer allowed to operate until it solves these problems.
Most of the time, this is caused by a lack of filing tax returns, or a lack of response when questions are being asked about the validity – even the legality – of your information provided. As a business, you should be looking to deal with this problem as a matter of utmost urgency. A failure to do so is likely to see you struggle to make any kind of headway as a business in the years to come.
However, fear not: your businesses status is only suspended, not gone entirely. You can save this rather awkward situation by filing your tax returns, and also paying the tax which is due. Many people will find themselves being hit with a steep penalty at the same time, too. If you pay that penalty, then you can make sure that revival is a possibility.
Start off by contacting the FTB of California, and see if they will be willing to discuss the process with you. Most of the time, if you are eager to get yourself back up into good standing quickly, they can be more amicable in helping you to get things moving in the right direction once again.
However, you still need to contact them and start to build up a platform that allows you to make the payments. All returns that are needed as well as liabilities that need to be paid up, as well as penalties, need to be settled in full. This means that your business is then approaching the point where, with everything paid off, you have the opportunity to operate once again.
This can take a lot of time, though – up to four weeks in many cases. This is a frustration, of course, and can leave you in limbo until it’s all dealt with. This is why we recommend that you take the time to invest in a CPA as soon as possible. with their help, you can make sure that such shows of negligence can be avoided, and that you can run on a well-managed basis.
