“Congratulations on registering your new business with the state of California. Our records show you have yet to file for your companies certificate of status….”
Recently, customers have been calling in asking about letters they are receiving. These letters claim the recipient must purchase a certificate of status in order to properly conduct business. They are receiving these letters from private companies attempting to appear as if they are a government agency. The letters state you must order a “certificate of status” to prove your corporation is in good standing and will be necessary in order to open a bank account. They then ask the potential customer to pay $49.50 to $299.00 for their certificate of status. Most of this is not true and is one of the newest fastest growing scams!
While it is true you may in certain rare situations need a certificate of status. It is not needed by the average new business owner. The only situations that you will need this certificate is if you are trying to register your corporation in another state. Or, maybe you are attempting a merger with another company and the other entity needs proof that you are in good standing with the Secretary of State. Also, the Secretary of State will never waste a stamp to let you know anything that is not absolutely necessary.
Furthermore, only the Secretary of State can issue a valid certificate of status. The price of which can range from free, to about $80.00. Quite a huge price difference from what these private companies are charging. Even if you wanted to have a reputable company file your certificate, it wouldn’t cost nearly what they charge. AAAFiling.com can file your certificate depending upon your state anywhere from $25.00 to $105.00.
So, if you ever open up a letter that looks official requesting payment for a certificate of status. Pat yourself on the back for reading this blog post and throw it in the trash!