Corporations, like individuals, are required to file annual tax returns with NYS. Depending on the location of the principal office, there may be additional tax payment requirements locally. Knowing your tax status is important if you want to maintain the validity of a business; only an active business may apply for loans, transfer title to real estate, or obtain a Good Standing Certificate from the Secretary of State. If you are buying a business or the rights to a name of an existing business, it is advisable to research it for any outstanding tax liabilities prior to closing.