A Note On Scams

New organizations are public entities. All details provided in the Articles of Incorporation (including names, addresses, and phone numbers) are public information. Some states require paid access to new filings, though most are available free to the public on the Secretary of State’s website. As a result, some businesses prey on new organizations.

Within a week or two of filing, new entities receive a lot of mail that look like official state documentation. These mailings typically cite statutory requirements or indicate additional required steps, for an additional fee, to complete filing as a new company.

The most common scam requires paying for a Certificate of Good Standing. While the naming varies, all states have a form of this document. However, it is only necessary for particular circumstances, like setting up operations in another state. In other words, most new nonprofit organizations will not need a Certificate of Good Standing for any purpose.

These scam mailings are almost always solicitations and must state somewhere, usually in tiny print, it is not from a government entity. Registered Agents should read everything mailed to them very carefully to avoid unnecessary expenses for useless services.

Each of BryteBridge’s clients receives a dedicated specialist. Suppose one of our clients gets a questionable mailing. In that case, our specialists will review and guide whether it is a scam or something to take seriously. This service is part of all of our startup packages.

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