At some point, you may be asked to provide a certificate of status for your California limited liability company (LLC). In addition, many creditors ask for a certificate of status before issuing business credit.
A California certificate of status is relatively easy to obtain, but it does take some know-how. Lucky for you, this handy guide tells you how to do it.
What Is a California Certificate of Status?
A certificate of status, known as a certificate of good standing in most states, is issued by the state of California and verifies that your LLC complies with all state regulations. The state will issue the certificate if you’ve met all deadlines, such as annual report filings.
Keep in mind that you’re not required to get a certificate of status in California, but banks and creditors might request one, so it’s wise to have it on hand.
In What Situations Would I Need a Certificate of Status?
Again, a bank or creditor might request a certificate of status when you apply for a business loan or business credit. But, again, it’s nothing to worry about; just part of their due diligence and risk assessment to verify that you’re registered to do business in the state and fully compliant.
In addition, if you expand your business to other states, you’ll have to register as a foreign LLC. In such cases, the new state may request a certificate of status from your home state.
Requirements to Obtain a Certificate of Status in California
You must have a registered business entity in the state, either an LLC or a corporation. Sole proprietorships and partnerships do not register with the state, so they cannot obtain a certificate of status.
You’ll also need to comply with all legal requirements for your LLC or corporation in California. That means you’ll need to be up to date on all California business licenses, permits, and reporting requirements.
Which Department Issues Certificates of Status in California?
In California, the Secretary of State issues certificates of status. You can obtain one online.
How to Get a Certificate of Status in California
To get your certificate of status, head to the Secretary of State’s website and search for your business
When you find your business entity, click on it and click the “request certificate” icon.
The fee is $5, and assuming your LLC is in full compliance, you should be able to access your certificate online immediately.
You can no longer request the certificate by mail. You can only obtain it online.
Getting a certificate of status may seem like a hassle, but you won’t think that when you need financing. So be sure to get it done when you have a chance – you, and your LLC, will be happy you did.