What is a Certificate of Status?
A Certificate of Status is a state-issued document that proves your business exists and has maintained compliance with all state requirements, such as filing annual reports and paying franchise taxes. Some states refer to this document as a "Certificate of Good Standing", a “Certificate of Existence” or a “Certificate of Authorization”.
When do you need a Certificate of Status?
You'll need a Certificate of Status when your business expands to another state (otherwise known as a foreign qualification) or when you wish to obtain or renew certain types of financing, loans, or licenses, as in the case of a merger acquisition.