Ways to Prove Your Business Exists and Is Operating

As a business owner, there are several instances where you may need to prove that your business is both legitimate and actively operating. Whether you’re applying for a business loan, opening a merchant account, or working with vendors, providing verification is often a necessary part of the process. Having the right documentation ready can make these interactions smoother and more efficient.

Here are some of the most common ways to prove that your business exists and is operational:

1. Business License or Permit

A business license or permit is one of the most straightforward ways to prove that your business is legitimate. Issued by local, state, or federal authorities, these documents confirm that your business is authorized to operate in a specific location or industry. Make sure your license or permit is up to date and readily available when requested by financial institutions, vendors, or regulators.

2. Employer Identification Number (EIN)

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is issued by the IRS to identify your business for tax purposes. If you have employees, or if your business is registered as a corporation or partnership, you’ll need an EIN. It’s a widely accepted proof that your business exists and is officially recognized by the federal government.

3. Articles of Incorporation or Organization

For incorporated businesses or LLCs, the Articles of Incorporation (for corporations) or Articles of Organization (for LLCs) are key documents that prove your business was legally formed. These documents include important details like your business’s name, address, and the names of its directors or members. Financial institutions often require these documents when you open a business account or apply for a loan.

4. Bank Account Statements

A business bank account not only helps separate your personal and business finances, but it also serves as proof that your business is actively operating. Recent bank statements showing business-related transactions can be an effective way to demonstrate the financial activity and operational status of your business.

5. Tax Returns

Submitting your business’s tax returns is a reliable way to prove that your business exists and is operational. Tax returns are often requested when applying for loans or financial products, as they show consistent income, expenses, and overall business health. If your business is filing regular tax returns, it’s a strong indicator that it is operating legitimately.

6. Lease or Property Ownership Documents

If your business operates out of a physical location, providing a commercial lease agreement or property ownership documents can serve as proof of your business’s existence. These documents demonstrate that you have a legitimate place of business where operations are conducted, making them especially useful for businesses that deal with customers or clients in person.

7. Utility Bills

Utility bills, such as those for electricity, water, or internet services, can serve as additional proof that your business is actively operating. These bills show that your business location is in use and can be requested by financial institutions or vendors to confirm ongoing operations.

8. Contracts and Invoices

Ongoing contracts with clients, vendors, or suppliers, along with issued invoices, can serve as proof of active business operations. They show that your business is engaged in work and generating income, which can be particularly useful when applying for financing or opening new business accounts.

9. Business Website and Online Presence

An up-to-date business website, along with a strong online presence through social media or directory listings, is another way to show that your business is actively operating. While this may not serve as official proof, many banks and lenders may check your online presence as part of their due diligence process.

10. Merchant Account Statements

For businesses that accept credit card payments, recent merchant account statements provide a clear record of sales transactions and revenue. These statements not only verify that your business is operational, but they also show the volume and frequency of transactions.

Conclusion

Proving that your business exists and is actively operating is an essential part of running a successful enterprise. By keeping your documentation organized and up to date, you can streamline interactions with financial institutions, vendors, and partners. At Corpay USA, we help businesses with secure and efficient payment processing solutions that make it easier to keep your business running smoothly.

Need help managing your business finances and proving your operational status? Contact Corpay USA today to learn more about how we can support your business.