You may be asked to provide a certificate of status for your New York limited liability company (LLC). Banks and creditors often ask for this document before issuing business credit to ensure you comply.
A New York certificate of status is relatively easy to obtain, but it does take some know-how. Lucky for you, this handy guide walks you through the process.
What Is a New York Certificate of Status?
In New York, a certificate of status, known as a certificate of good standing in most states, verifies that your LLC fully complies with state regulations. The state will issue the certificate if you’ve met all deadlines and filed all relevant reports.
Keep in mind that you’re not required to get a certificate of status in New York, 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. This is simply part of their due diligence and risk assessment, confirming that your business has no outstanding regulatory issues.
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 New York
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 New York. That means you’ll need to be up to date on all New York business licenses, permits, and reporting requirements.
Which Department Issues Certificates of Status in New York?
In New York, the Department of State issues certificates of status.
How to Get a Certificate of Status in New York
In New York, you must submit a written request to obtain a certificate of status. The request must contain the following:
- A specific statement requesting a Certificate of Status.
- The exact name of the corporation or business entity.
- The Department of State ID number or the exact date of formation or authorization, if known.
- A statement as to whether the request is for routine or expedited processing.
- The mailing address where the Certificate of Status is to be mailed.
You’ll mail the request to:
New York State Department of State, Division of Corporations
One Commerce Plaza
99 Washington Avenue
Albany, NY 12231
The fee is $25, and assuming your LLC is in full compliance, your certificate will be mailed within 24 hours.
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.