Navigating Corporate Changes that Impact Existing Licensing

When your company makes some changes, it may require that you take action to maintain your licensing and/or bonds. Though a corporate change may seem trivial to a company or agency, the consequences of not reporting the change can be costly and significant. Time is of the essence with regard to reporting corporate changes. Don’t get stuck with avoidable fines and penalties by timely reporting corporate changes.

We help companies with these changes:

Ownership change/Re-capitalization
Opening a secondary/branch or call center
Officer change/Manager change
Address change
Name change/DBA

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Our Licensing Portal gives our clients a view into the progress in all three areas.

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Here are some of the most common corporate changes that could impact your licensing:

Ownership Changes

The statutory regulations for the vast majority of jurisdictions prohibit the transfer of licenses in the event of a change in the equity positions on the balance sheet of the licensed corporate entity (merger, acquisition, or re-capitalization.) Some level of notification or relicensing is almost always required.

Branch / Call Center Openings

Certain jurisdictions require that all locations from which consumers or debtors are communicated with maintain a separate license. Obtaining a branch license can be as involved as the original license or in some cases as uncomplicated as a letter notifying the jurisdiction about the new location.

Officer/ Manager Change

Jurisdictions require notification of a change in corporate officers or a licensed / listed manager. Certain states will require background checks be performed prior to the new officer or manager approval. Other states will require managers to take and pass state administered exams prior to the new manager approval.

Address Change

Written notification of a change in the corporate address listed on your licenses is required in most jurisdictions. Certain states will require the surrender of the previous location’s license. Bond riders indicating the new address are also necessary in most states with bonding requirements.

Entity Conversion

Changing from one type of entity to another (ie. from a C Corporation to an LLC) is a significant event in the life of an organization. Reporting this change to the Secretary of State is not enough. Some level of notification or relicensing is almost always required.

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These are some of the more common corporate changes that must be reported to the states in a timely manner. Failure to do so could result in fines, penalties or even loss of license. Safeguard your business by partnering with a licensing servicing company like Cornerstone Support that can allow you to have confidence and help to stay current on all of your licensing needs.

Even if your company handles its own licensing, managing a corporate change may likely require competent outside help to accomplish it in a timely manner.

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Frequently Asked Questions

Do licenses and registrations Expire?

Yes; most licenses and registrations renew on an annual basis.

If my company has more than one location, do I need more than one license?

Yes; many states require branch licensing for each physical location from which business activity occurs.

How often do state statutes change?

State statutes change regularly, which is why reviewing your licensing scope on a yearly basis (at a minimum) is imperative to ensure proper licensing.

Corporate Change Notifications

Navigating Corporate Changes that Impact Existing Licensing

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