You may be asked to provide a certificate of fact status for your Texas limited liability company (LLC). Banks and creditors often ask for this document before issuing business credit to ensure you comply.
A Texas certificate of fact 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 Texas Certificate of Fact Status?
In Texas, a certificate of fact 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 fact status in Texas, 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 Fact Status?
Again, a bank or creditor might request a certificate of fact 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 fact status from your home state.
Requirements to Obtain a Certificate of Fact-Status in Texas
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 fact status.
You’ll also need to comply with all legal requirements for your LLC or corporation in Texas. That means you’ll need to be up to date on all Texas business licenses, permits, and reporting requirements.
Which Department Issues Certificates of Fact-Status in Texas?
In Texas, the Secretary of State issues certificates of fact status. You can obtain one online.
How to Get a Certificate of Fact Status in Texas
Visit the Secretary of State’s website and sign into your account.
- Click on the Business Organizations link from the menu bar at the top of the page.
- From the menu, click on Order – Certificates and Copies.
- Under Order Type, choose Certificate of Fact.
- Under Fact Type, choose Status.
- Enter the SOS File Number and Click Add Order Item.
The fee is $15, and assuming your LLC is in full compliance, you should be able to access your certificate within three business days.
Alternatively, you can order the certificate:
- By phone: (512) 463-5578
- By email: [email protected]
- By written request to:
Secretary of State
P. O. Box 13697
Austin, Texas 78711-3697
Getting a certificate of fact status may seem like a hassle, but you won’t think that when you need financing. Be sure to get it done when you have a chance – you, and your LLC, will be happy you did.