Suspended Corporations

SUSPENDED CORPORATIONS

Consequences of Suspension. Incorporated associations that become suspended by the Secretary of State lose the right to conduct legal business, to file and defend against lawsuits, to collect assessments, enforce rules, enforce vendor contracts, etc. The association can also lose its corporate name if someone reserves it during the suspension period.

Reasons for Suspension. Associations can have their corporate status suspended for the following reasons:

Failure to file tax returns (Rev. and Tax Code §23301)
Failure to pay taxes (Rev. & Tax Code §§ 23301.5, 23775)
Failure to file a biannual "Statement by Domestic Nonprofit Corporation" form with the Secretary of State.
Failure to file a biannual "Statement by Common Interest Development Association" form with the Secretary of State.

You can check your association's corporate status by typing in your association's name on the Secretary of State's website.

Reviving Suspended Corporation. If your association's corporate status has been suspended, it can be revived by filing any delinquent tax returns and/or paying any delinquent tax balances, including penalties, fees, and interest. For more information, go to the Franchise Tax Board's website.

Updated 6/30/2008