Has Your HOA Been Suspended?
Suspension of an association's corporate status is very serious. The association:
- Cannot file lawsuits or defend itself against lawsuits,
- Cannot enforce contracts,
- Can lose its corporate name if someone reserves its name during the suspension period, and
- Can lose its right to obtain an extension to file tax returns.
If an association fails to revive its corporate status, the Secretary of State can administratively dissolve the corporation if it has been suspended for 48 months or more.
Corporations can have their corporate status suspended for any of the following reasons:
- Failure to file their tax returns
- Failure to pay their taxes
- Failure to file a Statement of Information with the Secretary of State, or
- Failure to file a Statement By Common Interest Development Association, with the Secretary of State.
You can verify if your HOA has been suspended by visiting the website provided by the California Secretary of State, or Nationwide Accounting Services can do it for you.
If suspended, for a flat fee $200, Nationwide Accounting Services will check with the Franchise Tax Board and California Secretary of State in order to determine what needs to be done in order to reinstate your HOA. We will also provide you with the cost of reinstating the corporate status, including the filing of any documents and payment of taxes, penalties, and any fees owing. Your HOA may to use the services of Nationwide Accounting Services, but shall have no obligation to do so.
For additional information, please call 818-991-9019 or you may visit: NationwideAccounting.net.