Certificate of Existence vs. Certificate of Incorporation: Understanding the Differences

Understanding the legal formalities associated with incorporating or registering your company is crucial when beginning a business. A certificate of incorporation or certificate of existence, depending on the state you are doing business in, is one of the most important documents you need to obtain. Despite the fact that these two names can seem to refer to the same document, they do not. A certificate of incorporation is required. An official document that certifies the formation of a corporation is a certificate of incorporation. It serves as evidence that a company has been incorporated in accordance with state legislation and is issued by the state government. In addition to the company’s name, objectives, and location, this certificate also lists the founding directors and the amount of authorized shares.

When signing contracts, creating a corporate bank account, and applying for business licenses and permissions, it is typical to need a certificate of incorporation. Additionally, it is required while looking for investors or loan applicants. A certificate of existence is required. A certificate of existence, also known as a certificate of good standing, attests to a company’s legal right to operate in a specific state. It attests that the business has submitted the essential paperwork and paid the state’s due fees and taxes.

When a business is moving its operations to a another state, changing its name, or combining with another business, a certificate of existence is typically necessary. Additionally, it is required when requesting particular company licenses or permits.

Before you may continue commercial operations, your company may need to be reactivated if it has been dissolved or is no longer operating. Depending on the state you are doing business in, there are several procedures for reactivating a corporation.

Generally speaking, you must submit a reinstatement paperwork to the state and settle any unpaid fines or taxes. Additionally, you might have to supply any updates to your company’s contact information and registered agent. You will want a certificate of existence to prove that your company is legitimate to operate after it has been restored.

Every two years, LLCs in Indiana must submit a biannual report to the Secretary of State’s office. The report must be submitted online and is due in the month that marks the LLC’s creation anniversary.

You must log in to the Secretary of State’s website and change your company’s information, including its registered agent and address, in order to renew your LLC. A filing fee is furthermore due. You will be issued a certificate of existence after your biennial report has been accepted.

Before you may begin business operations, your company must be reinstated if the state has administratively dissolved it. You must submit a reinstatement application to the Secretary of State’s office along with any unpaid fees or taxes in order to achieve this.

Additionally, you will need to supply up-to-date details about your business, including its registered agent and address. You will obtain a certificate of existence after your application is accepted, enabling you to resume conducting business in Indiana.

In conclusion, despite their apparent similarity, certificates of existence and incorporation pertain to distinct legal papers. A certificate of existence attests to a company’s legal right to operate in a certain state, while a certificate of incorporation attests to the formation of a corporation. Before you may start conducting business again, your firm must be reactivated or reinstated if it has been dissolved or is no longer functioning. For businesses looking to grow, alter their name, or merge with another business, obtaining a certificate of existence is essential.