Reinstate a Business in California | A Step-by-Step Guide

by
Reinstate California Business

Running a business or forming an LLC in California can be a rewarding yet challenging experience. When operating a business, unforeseen circumstances may arise, leading to the suspension or dissolution of the entity. If your business has been suspended or dissolved in California, you do not need to worry. This guide will provide a step-by-step process to Reinstate your Business in California and get back on track.

Webinarcare Editorial Team will help you easily reinstate your California business. You must be guided by all the factors gathered in this article.

How to Reinstate a Business in California

Understanding Dissolution and Suspension

Before diving into the reinstatement process, it’s essential to understand the difference between dissolution and suspension.

Dissolution

Dissolution is the legal termination of a business entity. This can happen voluntarily by the owners or involuntarily by California due to non-compliance with state laws and regulations. When a business is dissolved, it must cease all operations and settle outstanding debts and liabilities.

Suspension

The state can suspend a business entity for various reasons, such as failing to file Biennial Reports or paying taxes. When a business is suspended, it loses its right to conduct business within California, and the owners may be personally liable for any debts or liabilities incurred during the suspension period. Hiring a Agent for Service of Process for your documents to be compliant is very important. You could check out the Best California Agent for Service of Process Services in California.

LLC Service

Rating & Pricing

Top Features

Learn More

#1 Recommendation

$299 Per Year

  • Free LLC Formation

  • RA service in all states

  • Legal consultation

Learn More

$125 Per Year

  • Flat price for RA service

  • LLC formation package

  • Fast service

Learn More

How to Reinstate a Business in California

In California, reinstating your business needs a lot of preparation, more specifically if it is located in Sacramento. To be aware and prepared, we have gathered information on the steps to reinstate your California business. If it is manageable to Dissolve a Business in California, it is also bearable to reinstate your California business. Keep in mind that you should follow the mentioned steps below. 

Step 1: Determine the Reason for Suspension or Dissolution

The first step in reinstating your California business is determining why it is suspended or dissolved. This information can be found in the notice issued by California or by contacting the California Secretary of State. Common reasons for suspension or dissolution include:

  • Failure to file Biennial Reports
  • Failure to pay taxes or fees
  • Failure to maintain a Agent for Service of Process
  • Non-compliance with state laws and regulations

Step 2: Resolve Outstanding Issues

Once you have identified the reason for your business’s suspension or dissolution, you must resolve the outstanding issues. This may include:

  • Filing any missing California Biennial Reports and paying associated fees. In California, the LLC Biennial Reports costs $10, $20 every 2 years while the Corporation Biennial Report costs $25.
  • Paying any outstanding taxes or fees
  • Appointing or updating your Agent for Service of Process information. 
  • Resolving any non-compliance issues with state laws and regulations

Ensure that you keep records of all payments and documents submitted to the California Secretary of State, as you may need to provide proof of compliance during the reinstatement process. We recommend hiring the Best Agent for Service of Process Services if you plan to reinstate your business. This will ensure that your documents are up to date.

It is suggested that you speak with a legal professional before you begin reinstating your California business. They’ll understand what’s best for you and your company. To safeguard your personal assets from business debts, you can always start an LLC in California.

– WEBINARCARE EDITORIAL TEAM

Step 3: Obtain a Certificate of Status

Certificate of Status is a document issued by California that verifies that your business is in compliance with all state requirements and is authorized to conduct business within the state. Although obtaining a Certificate of Status is not always required for reinstatement, it can be beneficial in demonstrating your business’s compliance and may expedite the reinstatement process.

To obtain a Certificate of Status in California, you will need to:

Get and Submit the Form

The form is available on the California Secretary of State website. You can download the form and mail it or submit it online. 

Online Application Process:
  • Visit the State Website: In California, they offer an online portal for business services, which includes the option to request a Certificate of Status.
  • Register an Account: You may need to create an account or log in to your existing account to access the application process.
  • Provide Required Information and Documentation: The online application typically requires basic information about your business, such as the entity name, identification number, and business type. You may also need to upload supporting documents. 
Paper Application Process:
  • Download and Complete the Appropriate Forms: Visit the California Secretary of State to download the required application forms for the Certificate of Status. Complete the forms, ensuring all information is accurate and up-to-date.
  • Provide Required Documentation: In California, you may need to include copies of your registration documents, Articles of Organization, Biennial Reports, or other supporting materials.
  • Mail or Deliver the Application: Once you have completed the forms and gathered the necessary documents, mail or deliver the application package to the Secretary of State, Business Entities Filings, P.O. Box 944228, Sacramento, CA 94244, along with the required fees.
Pay Any Associated Fees

The fees for obtaining a Certificate of Status cost $5, vary depending on the type of business entity. Some states also offer expedited processing for an additional fee. Check the California Secretary of State website for the most up-to-date fee schedule. The Certificate of Status’s processing time varies from state to state. Also, it depends on the expedited filing as well. It can take a few days to a few months to obtain the Certificate of Status in California.

Provide Proof of Compliance

To prove compliance with state requirements, you must file Biennial Reports and pay the necessary taxes.

Recommended: Legalzoom’s annual report services provide a comprehensive and streamlined approach to ensuring businesses maintain compliance and transparency. Their attention to detail and dedication to client satisfaction make them the go-to choice for all your annual reporting needs. We recommend using –

LegalZoom – Starts at $99 + filing fees

Step 4: Submit Reinstatement Application

Once you have resolved all outstanding issues and obtained a Certificate of Status, you can submit your reinstatement application to the California’s Secretary of State. The reinstatement application process may vary depending on the state and the type of business entity (corporation, LLC, etc.).

In general, the reinstatement application process will require:

  • Completing a reinstatement application form is typically found on the California Secretary of State’s website.
  • Providing proof of compliance with state requirements, such as filing Biennial Reports, paying taxes, and maintaining a Agent for Service of Process.
  • Pay the reinstatement fee in California. The cost of the reinstatement fee amounts to $100 (domestic corporations), $250 (foreign corporations). However, the cost will vary depending on the length of time your California business has been suspended or dissolved.

Step 5: Wait for Approval

After submitting your reinstatement application and all required documentation, you must await approval from the California’s Secretary of State. The processing time for reinstatement applications can vary depending on the California and the complexity of your case. Being patient and prepared to provide any additional information or documentation requested by California during this time is essential.

Step 6: Notify Creditors and Stakeholders

Once your business has been reinstated, you must notify creditors and stakeholders of your business’s renewed status. This may include:

  • Sending a formal letter to creditors and stakeholders informing them of the reinstatement.
  • Updating your California business’s website and social media accounts to reflect the reinstated status.
  • Informing any relevant licensing or regulatory agencies of the reinstatement.

Step 7: Resume Business Operations

After your California business has been reinstated and all relevant parties have been notified, you can resume your business operations. Be sure to maintain compliance with state laws and regulations moving forward to avoid future suspensions or dissolutions.

Reinstating or Creating a New Business?

Whether to reinstate a business or start a new one from scratch depends on several factors specific to your situation. Here are some points to consider when making your decision:

  • Costs: The costs of reinstating and starting a new business can vary significantly. Reinstating a business may involve paying outstanding taxes, fees, and penalties while starting a new business requires registration fees and potential legal costs. Compare both options’ costs to determine which is more financially viable.
  • Business History and Reputation: If your previous business has a strong reputation and established customer base, reinstating it may be more beneficial than starting from scratch. On the other hand, if your California business has a negative history or unresolved legal issues, start fresh with a new business.
  • Time and Effort: Reinstating a business can be a time-consuming process, as you need to resolve outstanding issues, submit a reinstatement application, and wait for approval. Starting a new California business may be faster, as you can register the business and begin operations relatively quickly. Consider which option is more time-efficient based on your situation.
  • Legal and Regulatory Compliance: If your previous California business was suspended or dissolved due to non-compliance with state laws and regulations, you should carefully evaluate whether you can maintain compliance if the business is reinstated. If you are confident in your ability to comply with requirements, reinstating the business might be a good option. However, starting a new California business might be a better choice if you still determine your ability to maintain compliance.

Ultimately, deciding to reinstate a business or start a new one from scratch depends on your circumstances and goals. Consider the abovementioned factors, consult with professionals such as California Business Attorneys and accountants, and evaluate which option best suits your needs and long-term business objectives.

FAQs

How do I reinstate my California LLC or corporation?
You can start by filing a Statement of Information and paying the necessary fees.
Can I reinstate my California business online?
Yes, you can file most reinstatement documents online through the California Secretary of State’s website.
How much does it cost to reinstate a California business?
The costs can vary depending on the type of business entity and the number of years it has been suspended, but generally range from $50 to $800.
Can I use the same name for my California business if it was suspended?
No, if a name has been suspended, it cannot be reused until the suspension is removed.
How long does it take to reinstate a California business?
Processing times can vary depending on the volume of filings at the time, but it can take from a few days to several weeks.
Can I still do business while my California business is suspended?
No, it is illegal to conduct business while the business is suspended.
What happens if I don’t reinstate my California business?
After a period of time, the business entity can be permanently revoked by the California Secretary of State.
Why was my California business suspended?
California businesses can be suspended for a variety of reasons, including failure to file required documents or pay fees, or failure to maintain a registered agent.
How can I get the exact reason for my California business suspension?
You can contact the California Secretary of State’s office for more information about the specific reason for your business’s suspension.
Can I still file taxes for my California business if it’s suspended?
Yes, but you will need to file your taxes under a different name.
Do I need a California registered agent to reinstate my business?
No, but you will need to have a registered agent if you want to keep your business in good standing.
Can I change my California business name when I reinstate it?
Yes, but you will need to file the appropriate name change documents and may need to pay additional fees.
What documents do I need to reinstate my California business?
The specific documents needed can vary depending on the type of business and the reason for suspension, but generally include a Statement of Information and payment of any back taxes and fees.
Can I reinstate my California business if I’m no longer the owner?
No, only the owner or authorized representative can reinstate a California business.
Can I cancel a California business suspension?
You can request a cancellation of suspension if you can prove that the reason for suspension has been resolved.
Can I get a refund if my California business reinstatement is denied?
No, filing fees are non-refundable regardless of whether the reinstatement is approved or denied.
Can I reinstate a California nonprofit that’s been suspended?
Yes, nonprofits can be reinstated by filing appropriate documents and paying the required fees.
Can I reinstate my California business if it’s been dissolved?
No, if your business has been formally dissolved, you will need to create a new business entity.
Can I reinstate my California business if I have outstanding debts?
Yes, but you will need to pay any back taxes or fees owed before your business can be reinstated.
Do I need to file a new California business entity if my original was suspended?
No, you can reinstate your original business entity if the suspension has been lifted.
Can I operate as a sole proprietorship in California if my business is suspended?
Yes, you can operate as a sole proprietorship without registering with the California Secretary of State.
How do I know if my California business is in good standing?
You can check your business’s status using the California Secretary of State’s business search tool.
What happens if I file incorrect information on a California reinstatement form?
You could incur penalties or have your reinstatement denied if the information is incorrect or incomplete.
What is the penalty fee for late filing of a Statement of Information in California?
Penalties for late filings can range from $50 to $250, depending on how long the filing is overdue.
Do I need to file annual reports for my California LLC?
No, but you will need to file Statement of Information forms every two years.
Can I file a California reinstatement in person?
Yes, you can file reinstatement documents in person at the California Secretary of State’s office.
How can I contact the California Secretary of State if I have questions?
You can contact the California Secretary of State’s office by phone, email, or mail.
How do I reinstate my California business?
To reinstate your California business, you will need to file a Revivor Statement with the California Secretary of State.
How long do I have to reinstate my California business?
In California, you have up to five years after your business has been suspended to reinstate it.
How much will it cost to reinstate my California business?
The cost to reinstate your California business will depend on various factors, such as the type of entity and the length of time it has been suspended.
What reasons may cause my California business to be suspended?
Your California business may be suspended for various reasons, such as failing to file annual reports or not paying taxes.
Can I still operate my California business while it is suspended?
No, you cannot operate your California business while it is suspended, nor can you legally enter into any contracts or do any business.
How long will it take to reinstate my California business?
The time it takes to reinstate your California business will depend on various factors, such as the backlog of filings at the Secretary of State’s office.
What is a Revivor Statement?
A Revivor Statement is a document you need to file with the California Secretary of State to reinstate your business.
Can I use the same business name after reinstating my California business?
Yes, you can use the same business name after reinstating your California business.
Do I need to pay all my taxes before reinstating my California business?
Yes, you generally need to pay all your taxes before reinstating your California business.
How can I check if my California business is suspended?
You can check if your California business is suspended by searching the business name on the California Secretary of State’s website.
Can I hire a company to reinstate my California business?
Yes, there are several companies that specialize in helping businesses to reinstate in California.
Can I reinstate my California business if I am not the owner or the agent for service of process?
No, only the owner, agent for service of process, or an authorized person can reinstate a California business.
Can I operate my California business in another state while it is suspended?
No, you cannot conduct business in any state while your California business is suspended.
What is an agent for service of process?
An agent for service of process is a designated person or corporation who agrees to receive important legal and tax documents on behalf of a business.
Do I need to file annual reports to maintain a California business?
Yes, you need to file annual reports to maintain a California business in good standing.
Can I get a refund if I decide not to reinstate my California business?
It depends on various factors, such as the filing fee paid and the stage of the filing process.
Can I change the structure of my California business during the reinstatement process?
No, you cannot change the structure of your California business during the reinstatement process, unless the structure was never properly filed with the state.
What happens if there are unpaid penalties from before my California business was suspended?
You generally must pay all unpaid penalties before you can reinstate your California business.
Is there a late fee for reinstating a California business?
Yes, there is generally a late fee for reinstating a California business.
Will my California business receive a new identification number after reinstatement?
No, your California business will retain its original identification number after reinstatement.
What information will I need to provide to reinstate my California business?
You generally need to provide your business name, identification number, and the reason for suspension to reinstate your California business.
Will I need to file new formation documents to reinstate my California business?
No, you will not need to file new formation documents to reinstate your California business.
Can I reinstate my California business if I owe state taxes?
It depends on various factors, but generally, you must satisfy outstanding tax liabilities to reinstate your California business.
Can I appeal the suspension of my California business?
Yes, you may be able to appeal the suspension of your California business through the California Secretary of State.
Will I need to provide updated contact information when I reinstate my California business?
Yes, you will generally need to provide updated contact information when you reinstate your California business.

Also Read

Conclusion

Reinstating a business in California can be complex and time-consuming. However, following the steps outlined in this guide, you can successfully reinstate your business and resume operations. Remember to stay diligent in maintaining compliance with state laws and regulations to avoid future issues and ensure the continued success of your business.

Leave a Comment