QUESTION

If the status of a 5013c corp is suspended by the FTB for failure to file returns, are the by-laws of that corp still in effect?

Asked on Sep 05th, 2016 on Corporate Law - California
More details to this question:
I am a member of a local jeep club. That club claims 5013c status However, when I researched it, their status is listed as suspended by the FTB. Would their by-laws governing membership, dues, elections, etc, still be in effect?
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1 ANSWER

Real Estate Attorney serving Oakland, CA at Sack Rosendin LLP
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Yes. The members need to do whatever it takes to get new officers elected and so they can get all the club's government filings up-to-date. If the officers did not file state tax returns, they probably did not file federal tax returns, annual statements with the California Secretary of State, and the annual report to the California Attorney General. Failure to make these filings can cause the club to lose its non-profit and charity status. Complying is a lot cheaper than reinstating them. If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business. Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need. Dana Sack
Answered on Sep 07th, 2016 at 10:02 AM

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