Get out of jail free for dormant Corps & LLCs
Great news for those who set up a corporation or LLC in California and then never did anything with it other than accrue taxes, penalties and interest....California passed legislation this year that will actually give businesses a break!
Effective January 1, 2019, the Franchise Tax Board will have the ability to administratively dissolve or cancel corporations and LLCs that have been suspended. The FTB will provide advance notice of the pending action to the business, and the business will have the opportunity to object.
Here's the best part....the legislation (AB 2503) authorizes the FTB to abate, upon written request unpaid qualified taxes, interest, and penalties, for the taxable years in which the entity was not doing business.
If you've been planning to dissolve a business but haven't done so because of the taxes and penalties, here's your chance! If you need some help applying to the Franchise Tax Board for relief from the costs, give me a call and we'll walk through it together!