How do you know if your LLC needs to file a certificate of status?
You usually only require a certificate of good standing when other business entities request you provide one. For example, if you want to open a business bank account or apply for a line of credit with a wholesaler, they may ask you to provide a copy of your certificate of good standing.
Other times you may require a certificate of status includes:
- Registering for a business license to conduct business in another state
- Soliciting investors to invest in your business
- Applying for or opening different types of business financial accounts
- Applying for commercial auto loans to purchase commercial vehicles
- Applying for commercial auto leases to lease commercial vehicles
- Renting property for commercial use
- Applying for credit with suppliers and vendors
Please keep in mind that these are just some examples of various situations where you may need to present a certificate of existence.
Your LLC only needs a certificate of status when asked to provide one. When you first form an LLC, it is recommended to get a certificate of good standing since you will probably be opening financial accounts, wholesale accounts, etc.