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Certificate of Authority

Last modified: April 19, 2021
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Definition

A Certificate of Authority is a state-issued approval to operate as a corporation incorporated in another state, but doing business in the new state.  This is often required for larger organizations that expand to have a physical presence in places other than their original state of incorporation.

Example.  ABC Charity is a Georgia nonprofit corporation, expanding activities into Tennessee, Florida, and South Carolina.  ABC applies for a certificate of authority from each of the expansion states to be able to open offices for a Georgia corporation there.

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