Frequently Asked Questions

Why is it important to ensure that the Certificate of Existence is not outdated when engaging in a business deal or transaction?

Ensuring that the Certificate of Existence is not outdated when engaging in a business deal or transaction is crucial for several reasons. The Certificate of Existence, also known as a Certificate of Good Standing or a Certificate of Authorization, is a state-issued document that verifies your company's compliance with statutory requirements and its authorization to conduct business in that state. An outdated Certificate of Existence may indicate that your business is not in good standing, which could potentially hinder business deals or transactions. This certificate provides essential information about your company, such as its name, current status, and whether it has filed an annual report and is up-to-date on its state fee payments. In some states, the Certificate of Existence may also include specific tax information, although most tax-related information is typically obtained from the Department of Revenue. Therefore, an outdated certificate could potentially provide inaccurate or outdated information, which could negatively impact your business dealings. Moreover, if you're planning to do business in another state, you may be required to provide a Certificate of Existence. If this certificate is outdated, it could prevent you from conducting business in that state.