Administrative Dissolution/Cancellation of Domestic Corporations and LLCs.

• Position: FTB news

Beginning Jan. 1 eligible domestic corporations and domestic LLCs that have ceased doing business and have no assets may be eligible for administrative dissolution/cancellation under recently enacted AB 2503. The bill provides two options for administrative dissolution of qualified entities:

Administrative Dissolution/Cancellation: Authorizes the FTB to administratively dissolve those domestic corporations and LLCs that are suspended, have ceased doing business, been suspended for 60 or more consecutive months, paid all taxes and filed all returns due as of the date the entity ceased doing business.

Voluntary Administrative Dissolution/Cancellation:

Authorizes the FTB to abate, upon written request by a qualified entity, the unpaid qualified taxes, interest and penalties for the taxable...