A certificate of existence verifies a business is legally registered and permitted to operate in Oregon. Potential creditors or investors might request it when a business applies for financing. A certificate simply verifies status to third parties; it is not required to operate a business. The Oregon Secretary of State issues certificates for $10. To qualify, a business must comply with state regulations. Anyone can apply for a certificate showing registration and fee payment.
Clarifying the Purpose and Benefits
Keep in mind a certificate only indicates compliance and statutory requirements for good standing. Some states provide tax information on certificates; most keep tax records confidential. A certificate of existence differs from a certificate of incorporation or organization.
Obtaining a Certificate
When obtaining a certificate, it will confirm if a company legally exists and is authorized to transact business in that state. This status allows a company to enter contracts, own property, and conduct business. Without it, a company could not function.
Potential Benefits
There are benefits to having a certificate of existence. It can provide proof of legitimacy, build credibility, and make obtaining financing easier. A certificate can also help resolve disputes and protect business assets. However, a certificate is typically only needed if a business partner requires it.