Waldron & Schneider

Advertisements for “Necessary” Posters After I Form My Company

After registering your new entity with the Texas Secretary of State’s Office, business owners or their registered agents often receive correspondence recommending that they order a Certificate of Fact or offering to sell them the Federal Labor Law posters.  It is important for business owners to read these communications carefully and do a little research before blindly responding and paying the requested fees.

In Texas, any entity in good standing can order a Certificate of Fact from the Secretary of State’s Office at any time for a fee of $15.00.  This Certificate is a statement from the State of Texas that the entity is in good standing on the date the certificate is requested. These are often required as part of a sale or purchase of a business, for obtaining bank financing, or to renew licenses.  Newly formed business will often receive an advertisement offering to help obtain the Certificate for a fee ranging from $50-100.  The Certificate, however, can actually be obtained directly through the Secretary of State’s Office for just the $15.00 fee charged by the State.  Additionally, the Certificate only evidences the standing at the time it is requested and, usually, if one is requested, there is a specific time period in which it must be requested. For example, if you are closing on the sale of your business, the buyer may ask for a Certificate of Fact dated within 1 week of closing.  This is because entity status can change if the required Franchise Tax Returns or Public Information Reports are not timely filed. A prospective lender or buyer will not accept a Certificate that is old.

Similarly, thought business with employees are required to post the federal Labor Law / Know Your Rights poster advising employees of things including information on the Family Medical Leave Act, Fair Labor Standards Act, and other payroll or workers’ rights information, there are numerous businesses that can sell these posters. Because all of the required information is the same, business owners should shop around to secure the best deal. These posters are available in certain circumstances for free or less than $15-20 fee but are also available for more than $30.00.  Business owners are cautioned to exercise care and not blindly accept the advertisements that will inevitably find their way to your door.

If you have questions regarding either the Certificate of Standing or what requirements a business has with respect to US Labor Laws, the attorneys at Waldron & Schneider are ready to help.

The legal information in this blog entry is not intended to be a substitute for seeking personalized legal advice from an attorney licensed to practice in your jurisdiction.  Further, nothing contained in this article is intended to create an attorney-client relationship with any reader.  This article and website are made available by Waldron & Schneider for educational purposes only and to give basic information and a general understanding of the law, not to provide specific legal advice. By using this website you understand that there is no attorney client relationship between you and Waldron & Schneider. The article and website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. For more information or questions you can contact us and one of our attorneys will be in touch soon.

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