Maintaining your website’s legal compliance is entirely useless if your corporate entity falls out of good standing with the state. Every California LLC and Corporation must fulfill strict annual requirements to operate legally.
This includes filing a Statement of Information with the Secretary of State (annually for corporations, biennially for LLCs) to keep business addresses and officer details current and transparent. Furthermore, every registered entity must pay the $800 minimum franchise tax to the California Franchise Tax Board (FTB), regardless of whether the business generated a profit that year.
Failing to file the Statement of Information or pay the franchise tax will result in your business being officially suspended. A suspended business loses all corporate rights, meaning it cannot legally operate, sign contracts, or defend itself in a lawsuit.
