[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.grossmcginley.com\/resources\/news\/scam-alert\/beware-of-certificate-of-good-standing-scams\/#BlogPosting","mainEntityOfPage":"https:\/\/www.grossmcginley.com\/resources\/news\/scam-alert\/beware-of-certificate-of-good-standing-scams\/","headline":"Protect Your Business: Beware of Certificate of Good Standing Scams","name":"Protect Your Business: Beware of Certificate of Good Standing Scams","description":"At Gross McGinley, our Business Services team has recently seen an increase in scams targeting small business […]","datePublished":"2025-02-17","dateModified":"2025-02-17","author":{"@type":"Person","@id":"https:\/\/www.grossmcginley.com\/resources\/author\/john-gross\/#Person","name":"John F. \"Jack\" Gross","url":"https:\/\/www.grossmcginley.com\/resources\/author\/john-gross\/","identifier":13,"image":{"@type":"ImageObject","@id":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2021\/02\/John-F-Jack-Gross-headshot-150x150.jpg","url":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2021\/02\/John-F-Jack-Gross-headshot-150x150.jpg","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Gross McGinley, LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2017\/10\/logopng-00436945-e1531508982151.png","url":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2017\/10\/logopng-00436945-e1531508982151.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2025\/02\/Blog-Post-Preview-Image.png","url":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2025\/02\/Blog-Post-Preview-Image.png","height":665,"width":665},"url":"https:\/\/www.grossmcginley.com\/resources\/news\/scam-alert\/beware-of-certificate-of-good-standing-scams\/","about":["News","Scam Alert"],"wordCount":497,"articleBody":"At Gross McGinley, our Business Services team has recently seen an increase in scams targeting small business owners and entrepreneurs. These hardworking individuals strive to keep their businesses compliant, making them prime targets for bad actors who exploit their desire to maintain their reputation and legal standing. One scam that has recently surfaced involves fraudulent solicitations for Certificates of Good Standing. Here\u2019s what you need to know to protect yourself and your business.What Is a Certificate of Good Standing?A Certificate of Good Standing (or Subsistence Certificate) is a document issued by the Pennsylvania Department of State. It verifies that a business is properly registered, in compliance with state requirements, and authorized to conduct business. While this certificate is legitimate, it is rarely needed for most businesses. Common scenarios where it might be required include mergers, acquisitions, expanding to another state, or applying for certain licenses or financing. In Pennsylvania, a Certificate of Good Standing costs $40 and is valid for just 30 days. However, scammers are exploiting confusion around this document by falsely claiming it is essential for all businesses.How the Scam WorksScammers target new business owners by sending official-looking notices or emails that imply obtaining a Certificate of Good Standing is mandatory. They often:\tCharge exorbitant fees for the certificate (sometimes hundreds of dollars).\tProvide fraudulent or invalid certificates\u2014or none at all.\tUse fake websites to collect sensitive payment information, which can lead to identity theft or financial fraud.\tRequest checks, gaining access to your bank account and routing numbers.These scams are particularly aggressive with newly registered businesses, bombarding owners with lists of supposed \u201crequired\u201d certifications to pressure them into paying.How to Protect YourselfTo avoid falling victim to these scams:\tVerify the Source:\u00a0Enter the sender\u2019s name, phone number, or physical address into the Better Business Bureau (BBB) website. A quick Google search of their address can also reveal its legitimacy.\tKnow When You Need the Certificate:\u00a0Most businesses do not require a Certificate of Good Standing for daily operations. If you\u2019re unsure whether you need one, consult an attorney at Gross McGinley before proceeding.\tWork with Trusted Professionals:\u00a0If you determine that you need this certificate\u2014for example, during a merger or when expanding into another state\u2014your legal counsel can guide you through obtaining it directly from the Pennsylvania Department of State.Why Involve Your Attorney?Obtaining a legitimate Certificate of Good Standing may be necessary in cases involving litigation or major transactions. In these situations, involving your attorney ensures compliance with all legal requirements and protects you from falling prey to scams.Stay VigilantAs scammers become more sophisticated, staying informed is your best defense. Gross McGinley\u2019s Business Services team is here to help you navigate these challenges and safeguard your investment. If you have questions about Certificates of Good Standing or suspect fraudulent activity, contact Gross McGinley today.Protect your business by staying informed and working with professionals who prioritize your success."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Resources","item":"https:\/\/www.grossmcginley.com\/resources\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"News","item":"https:\/\/www.grossmcginley.com\/resources\/\/news\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"Scam Alert","item":"https:\/\/www.grossmcginley.com\/resources\/\/news\/\/scam-alert\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Protect Your Business: Beware of Certificate of Good Standing Scams","item":"https:\/\/www.grossmcginley.com\/resources\/news\/scam-alert\/beware-of-certificate-of-good-standing-scams\/#breadcrumbitem"}]}]