Several Critchfield clients who recently formed limited liability companies (“LLCs”) have received letters asking them to purchase an overpriced Certificate of Good Standing.
The price of this Certificate of Good Standing is over twelve times the actual cost. The Certificate of Good Standing is also unnecessary in most cases. Please know that many types of legal work, including forming LLCs, completing real estate transactions and other necessary public filings include small elements of publicly available records. Unfortunately, those looking to make a quick buck will sometimes scan these records, find your address and contact you.
Most of these scams have letterhead and names that sound official or quasi-governmental. They are worded to make you think that you need to respond or are required by law to purchase something. Occasionally some of the “services” that are offered are useful, although almost always overpriced. For many clients, like my recent ones, there is zero need for the services that the letters make sound so official and important. Please be on the lookout for these types of scams, and if you ever have any questions, please call the attorney that you are working with. We would be glad to take a quick look and make sure any correspondence is legitimate.