My California for profit corporation has been suspended. I want to dissolve it. However, CA Secretary of State says that I first have to revive the corporation before I file for dissolution. What are the legal consequences to me as a sole shareholder, director and officer of the corporation if I leave it suspended? The corporation does not have any debts, tax liabilities or assets. Thank you for any sugestions.
I wouldn't spend any more time, money or effort on this suspended corporation, or bother dissolving it. While it's certainly nice to pay into the cash-strapped state, there's really no downside to simply letting the Secretary of State keep the corporation suspended.
That's assuming you don't plan to start a new corporation. If you do, it's not unheard of for the SoS to require that you formally dissolve the previous corporation before starting a new one.
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This is analysis, not legal advice. I would counsel a similarly situated client to file a "final" state and federal return and abandon the suspended corporation.
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Wills and Living Wills Lawyer
I agree with Attorney Koslyn if you do not intend to reinstate in the future leave it suspended provided there are no outstanding or potential liabilities or obligations. If there are potential liabilities or obligations you would better serve yourself to officially dissolve the corporation. Best regards, Daniel Little
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