On October 1, 2026 Governor Gavin Newsom signed SB 711 (McNerney, Stats. 2025, Ch. 231)
1 min read
Tax Byte
In late August, the Franchise Tax Board (FTB) introduced another new online service for tax practitioners and small business owners. Business representatives and business tax professionals can now submit a request to revive their business through the Certificate of Revivor online application or by logging into MyFTB Account.
Franchise Tax Board Suspension
When a business has been suspended or forfeited, it is not in good standing and loses its rights, powers, and privileges to do business in California. Generally, businesses are suspended when they fail to:
- File a return
- Pay taxes, penalties, fees, and/or interest
Business entities registered with Secretary of State (SOS) must file and pay at least $800 in franchise or annual tax from their registration date to their current date, regardless of business activity.
ARTICLE CONTINUES BELOW
Secretary of State Suspension
The SOS will suspend/forfeit a business for not filing the required Statement of Information. A business can be suspended/forfeited by SOS and FTB at the same time.
If the SOS suspends/forfeits a business, it may impose a $250 penalty that FTB collects.
Suspended Businesses Lose Rights and Powers
If a business is suspended it cannot:
- Legally do business
- Sell, transfer, or exchange real property
- File with an automatic extension
- Be issued a refund
- Start or continue a protest
- Legally close or dissolve the business
- Bring an action or defend the business in court
- File or maintain an appeal before the Office of Tax Appeals
- Maintain the right to use its business name
- SOS will deny a revivor request if the entity name is no longer available
- SOS will require the business to choose a new name
- Retain tax-exempt status
- FTB revokes an organization’s tax-exempt status as of the suspension date
To revive a business and be in good standing, one must:
- File all past due tax returns
- Pay all past due tax balances
- File a revivor request form
For information on reviving a business with the Secretary of State, visit the SOS FAQs for suspension and forfeiture notices.