In Florida, potential creditors or investors might request a certificate of status for your LLC, and you’ll need to be able to provide one or risk the loss of key business financing. Thankfully, this guide provides all the information you need to get this certificate in Florida.
What is a Certificate of Status for Florida?
In Florida, a certificate of status, known as a certificate of good standing in other states, verifies that you’re a legally registered business entity that is up to date on all filings and fees and permitted to do business in the state. You do not have to obtain this certificate to do business in Florida, or in any state. It is simply used to verify your strong status to third parties such as banks.
Why Do I Need a Certificate of Status?
Your LLC only needs a certificate of status if another party requests one. For instance, a bank might request one if you’re opening a bank account or applying for a loan. The credit firm might request one if you apply for a business credit card, or if you set up credit card processing for customer payments.
If you’re registering as a foreign LLC in another state, you will probably be asked for a certificate of status.
A foreign entity is simply a business entity doing business in a state other than the one in which it’s registered. For example, if your business is registered in Florida but you also do business in Georgia, you’ll need to register a foreign entity in Georgia.
Where to Get a Certificate of Status in Florida?
In Florida, the Department of State issues certificates of status. Just go to the department of state’s website to fill out the required form. The cost is $5 and you should receive your certificate immediately.
Requirements for a Certificate of Status
You must be registered as a business entity in that state. Operating as a sole proprietorship does not require registration in Florida, so those entities are not able to obtain a certificate of status.
Corporations and LLCs, like your business, must be registered with the state, so they are able to obtain the certificate. In Florida, partnerships are also required to register, so they may also obtain a certificate of status.
How Much Does a Florida Certificate of Status Cost?
Again, a Florida certificate of status costs just $5 and it’s well worth it because this is an official document that proves your business’ financial accountability and could open the door to greater investment and expansion.