When Flowe started, we went through the process every business does when it forms a corporate entity. Within weeks, we received an official-looking letter, with a deadline, that looked like this example:
Another said we “have one step left to attain your elective California Certificate of Status.” In that case, there’s a $77.25 fee. In the example above, you can almost miss where it says “[t]his is a non-government agency.” This is either a partial scam, or a total scam. A certificate of status is a real document, but it’s only $5. It’s unclear whether you’ll receive anything if you send a check to “C.S.C.” for $49.50. But even if you do, this is a mark-up of 990% for a document you may not even need.
That’s like a $0.50 bottle of water costing more than $4.95. Wait, isn’t that what many stadiums charge fans?
As it turns out, this is a well-known scam and you can find other examples through a quick internet search.
When you’re starting a business, though, detecting scams can be difficult. Most people have no clue how to request a certificate of status, whether they need one, or its cost. They’re busy trying to open and conduct their business.
Flowe can help. Whether it’s the total scams, or the partial scams, we have experience identifying and avoiding fraud on behalf of Fortune 500 companies, small businesses, and individuals. We can assist you in ensuring that those early investments are not wasted.
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