Skip to content
BOL Conferences
Learn More - Click Here!

Thread Options
#1858249 - 10/03/13 07:42 PM Entity Status-What are we responsible for?
ComplianceAngel Offline
Junior Member
ComplianceAngel
Joined: Feb 2011
Posts: 39
OK
We opened a new account for an LLC in 2010. Got all the proper documentation-Certificate, Operating Agreement, etc. Recently I was monitoring the account for something different and just did an entity search on the Secretary of State website and the status shows "Inactive" now. Is the bank responsible to acquire additional documentation from the customer at this point? Is there anything I should do since I know that the company is technically not in good standing (for lack of a better word)?
_________________________
"Speak softly and carry a big stick; you will go far." Theodore Roosevelt

Return to Top
#1858261 - 10/03/13 07:59 PM Re: Entity Status-What are we responsible for? ComplianceAngel
OkieOps Offline
Platinum Poster
OkieOps
Joined: May 2001
Posts: 752
OK
When we have this come up, we typically contact the customer and ask them to get it taken care of. Our policy states that a business must be in good standing with the state. Usually they are not aware of the status and it something simple like a filing or fee they overlooked.

Return to Top
#1859175 - 10/07/13 07:22 PM Re: Entity Status-What are we responsible for? ComplianceAngel
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
This might also be a discussion with legal counsel. There is some discussion (and states differ) whether that entity has the ability to enter into a contract if inactive at the time of signing.
_________________________
Just working here until I get my letter from Hogwarts.

Return to Top