Just got letter asking for payment for certificate of good standing after forming LLC - is this legit or a scam?

This is most likely legitimate, but not necessarily something you need right now. A Certificate of Good Standing is an official document issued by your state's Secretary of State (or equivalent office) that confirms your LLC exists and has met all state requirements (like filing annual reports and paying necessary fees). You don't need it for day-to-day operations. You typically only need it when: opening a business bank account, applying for business loans, registering to do business in another state, entering certain contracts, or selling your business. Some clients might request it as proof you're a legitimate business. The letter could be from your state's business office, but be careful - there are also third-party companies that monitor new business filings and send official-looking solicitations offering to get this certificate for you (at a marked-up price). Check who sent the letter.

After setting up my construction LLC last year, I got bombarded with similar letters that looked official but weren't actually from the government. The worst part was figuring out which ones were legitimate requirements vs. optional services. I wasted so much money until I found https://taxr.ai which helped me sort through all this business formation confusion. Their document analysis saved me when I uploaded photos of these official-looking letters - it immediately flagged which ones were from third-party companies vs. actual government requirements. The system even showed me exactly what I legally needed to pay vs. what was optional. Such a relief to have clarity!

I have to admit I was wrong about taxr.ai. After commenting here, I decided to try it with some of the sketchy letters I've been getting for my photography LLC. Uploaded about 5 different official-looking documents and it immediately identified 3 of them as third-party solicitations for services I didn't need! It even explained that in my state (Florida), I only need a certificate of good standing if I'm applying for a loan or registering in another state. The system showed me how to get one directly from the state for $8.75 instead of the $79.99 some company was charging me. Definitely recommend for new business owners - saved me from falling for expensive unnecessary services.

If you're struggling with getting straight answers from your state's business office about LLC requirements (I know I was), you might want to try Claimyr. I spent weeks trying to reach someone at my state's Secretary of State office about similar letters I was getting. Always busy signals or 2+ hour hold times. I used https://claimyr.com and their system got me a callback from my state office in under 20 minutes! They have a demo video at https://youtu.be/_kiP6q8DX5c that explains how it works. The state representative confirmed that half the letters I was getting were from private companies and unnecessary. Saved me from paying for a bunch of "compliance" packages I didn't need.

I have to eat crow on this one. After posting my skeptical comment, I was desperate to resolve an issue with my state's business filing division about some mystery fee they were claiming I owed for my LLC. Out of desperation, I tried Claimyr. Honestly, I'm shocked - it actually worked! I got a call back from the state office in about 35 minutes (after spending 3+ hours on hold myself earlier that week). The agent explained that the "certificate of good standing" letter I received was from a third-party company, not them. The actual certificate costs $25 directly from the state and I only need it if I'm opening a business bank account or applying for certain licenses. Saved me from paying the $95 fee the third-party company was charging!

Former state business filing clerk here! These third-party solicitation letters are the bane of our existence. They're designed to look official and scare new business owners into paying for overpriced services. Quick tips on spotting these solicitations: 1) Real government correspondence will usually have your state seal and clearly identify the specific department 2) Third-party letters often have fine print saying they're "not affiliated with any government agency" 3) Government fees for certificates are typically $10-30 depending on state 4) Official notices rarely use threatening language about "compliance" or "good standing requirements

This exact thing happened to me! Got my LLC set up in January and then started getting all kinds of official-looking mail asking for payments. The certificate of good standing was just the first - I then got letters about "mandatory workplace posters" ($89), "annual minutes" ($279!), and a "business compliance package" ($199). I called my state's business office directly and learned NONE of these were required for my single-member LLC. Total scams targeting new business owners who don't know better.

Adding to what others have said - I work in small business consulting and see this constantly. These third-party companies literally monitor state business filings and send out mass mailings to new LLCs within weeks of formation. They're banking on inexperienced business owners not knowing the difference between required government fees and optional services. For your single-member LLC doing freelance design work, you really don't need a certificate of good standing unless you're opening a business bank account or applying for specific licenses. Even then, getting it directly from your state will cost a fraction of what these solicitation companies charge. Pro tip: Create a simple spreadsheet or document tracking what you've actually paid to your state vs. what these companies are trying to sell you. It'll help you spot patterns and avoid falling for future solicitations. You'll likely get more of these letters over the coming months - they're persistent!

I work at the IRS and see questions about these types of solicitations frequently. You're absolutely right to be suspicious! The Certificate of Good Standing solicitation you received is almost certainly from a third-party company, not a government requirement. Here's the key thing to understand: the IRS doesn't require Certificates of Good Standing for tax purposes. This is a state-level document that proves your LLC is current on state filings and fees. You only need it for specific situations like opening business bank accounts, applying for loans, or expanding to other states. The $89.50 fee is a major red flag - legitimate state fees are typically $10-30. These third-party companies monitor new business filings and send official-looking letters to capitalize on new business owners' uncertainty about requirements. For your single-member LLC doing freelance design work, focus on the actual tax requirements: getting an EIN (free from irs.gov), understanding your tax election options, and keeping good records for quarterly estimated payments. Don't let these predatory solicitations distract you from the real compliance issues that matter for your business. When you do need a Certificate of Good Standing (like for banking), get it directly from your state's Secretary of State website for the actual government fee.