A corporation whose corporate powers have been suspended or forfeited is without capacity to prosecute or defend against a suit until revivor of its powers by the appropriate statutory procedure (Rev. & Tax. Code §§ 23305 - 23305d). During the period of the suspension or forfeiture of its corporate powers, a corporation may neither prosecute nor defend an action. The assignee of a suspended corporation is also subject to the corporation's disability to prosecute an action. Therefore, prior to commencing a lawsuit, make sure that your corporation (or limited liability company) is in good standing with the Secretary of State’s office. If your corporation has been suspended, it is of utmost importance that you revive it prior to initiating a lawsuit, otherwise your action may be met with a motion for summary judgment, or an application for an early judgment in favor of the party you are suing.
