Has your corporation or LLC stopped doing business and is still receiving notices from the CA FTB to pay $800 minimum tax? Make it go away with their new Administrative Dissolution Program.

From the California Franchise Tax Board website:

Overview

Administratively, we have the authority to:

Dissolve a domestic corporation
Cancel a domestic limited liability company (LLC)

With a written request, your business must certify it:

Is not actively engaging in any transaction for the purpose of financial or monetary gain or profit
Has stopped doing business or never did business
Does not have any remaining assets

Once the Secretary of State (SOS) formally dissolves or cancels your business, we may abate:

Unpaid qualified taxes
Interests
Fees
Penalties

A Voluntary Administrative Dissolution/Cancelation does not forgive entities any delinquent taxes and penalties they owe from before they stopped doing business.

How to qualify

Your business qualifies if it:

Is a domestic corporation or domestic LLC registered for more than 12 months with the SOS
Is not actively engaging in any transaction for the purpose of financial or monetary gain or profit
Has stopped doing business or never did business
Has no assets

You can request a voluntary administrative dissolution/cancelation if your business is:

Active
Suspended
Dissolved
Canceled

If your business is active, file a Certificate of Dissolution or Certificate of Cancelation with the Secretary of State (SOS) to dissolve/cancel the business.

How to apply

Applying for this program will not legally terminate your business. You're still required to submit dissolution/cancelation paperwork to the Secretary of State to close your business.

Domestic Corporations file:

◦ Domestic Corporation Request for Voluntary Administrative Dissolution (FTB 3715 PC) Form Instructions

Domestic LLCs file:

◦ Domestic Limited Liability Company Request for Voluntary Administrative Cancelation (FTB 3716 PC) Form Instructions

You can mail or fax your form to the address or fax number below.

Mail

Business Entity Correspondence

Franchise Tax Board

PO Box 942857

Sacramento CA 95257-4040

Fax

916-845-5519

When writing to us, include your SOS business number or federal employer identification number (FEIN) and your phone number.

What happens after you apply

When we receive your completed form, we will review your request and contact you.

We verify if:

All tax returns have been filed up to the date the entity stopped doing business
All taxes, penalties, and interest have been paid up to the date the entity stopped doing business
Your business has no assets such as:
- Banks
- Property
- Licenses
- Stocks

If you have not filed and paid your tax liability, including penalties and interest, up to the date your entity stopped doing business, you can still apply.

Penalty

We may impose a penalty equal to 50% of the total tax abated with interest if: