In Texas, potential creditors or investors might request a certificate of fact – 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 Texas.
What is a Certificate of Fact – Status for Texas?
In Texas, a certificate of fact – 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 Texas, 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 Fact – Status?
Your LLC only needs a certificate of fact – 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 set up credit card processing.
If you’re registering as a foreign LLC in another state, you will probably be asked for a certificate of fact – 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 Texas but you also do business in Georgia, you’ll need to register a foreign entity in Georgia.
Where to Get a Certificate of Fact – Status in Texas?
In Texas, the Secretary of State issues certificates of fact – status. You can order copies online or by phone, email, or mail. The cost is $15 and most orders are processed within three business days.
Requirements for a Certificate of Fact – 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 Texas, so those entities are not able to obtain a certificate of fact – 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 Texas Certificate of Fact – Status?
Again, the fee to obtain a certificate of fact – status in Texas is $15. 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.