Ohio 4 Business Entity Status Definition

Ohio 4 Business Entity Statuses You Need to Know

1. Active

This status indicates that the business entity is currently in good standing with the Ohio Secretary of State. The entity has complied with all filing requirements and is authorized to conduct business in Ohio. For lenders, this status suggests a lower risk profile, as it demonstrates the business's commitment to regulatory compliance and ongoing operations, potentially indicating better creditworthiness and operational stability.

2. Held

This status often implies that the business's status is in a temporary state due to administrative reasons, such as pending review or processing of documentation. It may also relate to the reservation of a business name or other temporary measures that hold the status until final actions are completed. Lenders should approach businesses with this status cautiously, as it may indicate a transitional phase or unresolved administrative issues, potentially impacting the business's immediate ability to engage in certain transactions or access credit.

3. Dead

This status means that the business entity has been dissolved, either voluntarily by the business owners, involuntarily by the state due to non-compliance with filing requirements, or because it has merged into another entity. A "Dead" status entity is no longer authorized to conduct business. This status represents a significant risk for lenders, as it indicates the business has ceased operations and is no longer a legal entity, making any lending extremely risky and potentially impossible due to the lack of a valid borrowing entity.

4. Cancelled

This status indicates that the registration of the business entity has been cancelled. This can occur for various reasons, including the business voluntarily deciding to cancel its own registration or the state cancelling it due to non-compliance with legal requirements. For lenders, a cancelled status raises serious concerns about the business's operational status and legal standing, significantly increasing lending risk and potentially rendering the business ineligible for most forms of credit due to its lack of valid registration.