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Sunday, April 24, 2011 6:00:33 PM
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When is a Certificate of Status required / Who Needs a Certificate of Status?
1. If you are filing a Certificate of Authority to do business in another state, the state will normally require the Certificate of Status as evidence you existence in the home state, as well that the business entity is in good standing and that you abide by the rules of that jurisdiction.
2. Opening a new bank account. Your bank may request this document to verify the validity of the company and protect itself from fraud.
3. If you are filing an application to obtain credit / loan on behalf of the business entity.
4. If you are involved in a legal action the court want you to prove your entity is in status with the State.
5. Potential business partners or investors.
6. Before signing a large contract, a company may be asked to present a Certificate of Status.
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