In New York, potential creditors or investors might request a certificate of status for your LLC, and you’ll need to provide one or risk losing crucial financing. Thankfully, this guide provides all the information you need to get this certificate in New York.
What is a Certificate of Status for New York?
In New York, a certificate of status, known as a certificate of good standing in most 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 New York, 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. A 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 New York 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 New York?
In New York, the Department of State issues certificates of status. To obtain one, you need to submit a written request to:
New York State Department of State
Division of Corporations
State Records and Uniform Commercial Code
99 Washington Avenue, 6th Floor
Albany, NY 12231
The cost is $25 and you should receive your certificate within 14 days. You can pay an additional $25 to have your request processed and mailed within 24 hours.
Requirements for a Certificate of Status
You must be registered as a business entity in that state. Operating as a sole proprietorship or a partnership does not require registration in New York, 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.
How Much Does a New York Certificate of Status Cost?
Again, the fee to obtain a certificate of status in New York is $25. But 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.