Expert Advice When You Need It Most
I had a CA Corp. Business & ceased doing business over 26 years ago.... I simply quit doing any more business & owed no $.This CA Corp. ceased doing business without formally closing the Corp. I had paid all my taxes, insurance etc. and had no unpaid bills. The business ceased making money and I went through a divorce & major illness. Now all these years later, it does not show on any credit report either. I am thinking about going to work for a defense contractor and a security clearance may be necessary.... Will this come back to bite me? Attorney answers (3)
Your CA corporation is a separate legal entity, so it shouldn't show up on your perconal credit report. But you should have formally dissolved it 26 years ago. Check the Secretary of State lawsuit linked below, maybe it will be listed as dissolved.
Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship. 1 person marked this answer as good
Add comment
To properly close a business you should have dissolved it with the Secretary of State, and filed a final income tax return. The Secretary of State most likely has placed you on a suspended or revoked status, if it even shows up after all of these years. The IRS expunges its files every 10 years. This should not come back to bite you, as you say. Go to the Secretary of State's website and check the status of the corporation. At any rate, this should not affect you personally.
This presentation does not constitute legal, accounting or other professional advice. Only through a personal, confidential consultation with qualified legal counsel can anyone properly evaluate their own unique estate planning challenges and determine what, if any, appropriate legal strategies and tactics should be implemented to meet those challenges. Circular 230 Disclaimer: “Nothing in this presentation is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisers regarding the same.” 1 person marked this answer as good
Reputation Level 6
Answered over 2 years ago.
Business Attorney in Newport Beach, CA.
If there is a question regarding your prior businesses and, specifically, whether it was dissolved, then it could be relevant. However, if the questions only relate to your background in terms of fraud, criminal activities, and other areas of moral character, then the question may not arise. The only answers are accurate in that the proper way to dissolve a corporation is to file a Domestic Stock Dissolution (see http://www.sos.ca.gov/business/corp/pdf/dissolu...). As it was many years ago, the California Franchise Tax Board (for not filing a final return and/or paying the minimum annual franchise tax fee) or the Secretary of State (for not filing the required Statement of Information reports) may likely have put the company into a suspended status, in which the corporation would no longer be able to transact business. You can check on the status of the corpration at: http://kepler.sos.ca.gov/
Disclaimer: This answer is not intended to, and does not, constitute as or create any legal advice or any attorney-client relationship. 1 person marked this answer as good
Related Questions4 Attorney answers: 
Asked by a user in Susanville, CA - about 1 month ago. 1 Attorney answers: 
Asked by a user in San Jose, CA - about 3 years ago. 1 Attorney answers:
Asked by a user in Los Angeles, CA - 6 days ago. This Week's Top Business ContributorsView all lawyers on the Business LeaderboardFind Business Lawyers |
