Él y yo somos amigos.

How come “ser” is used here and not “estar”?

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It’s ser amigos, not estar amigos.

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“Estar” is used with locations (for example, “Estoy en casa”; I’m at home) or “feelings” (for example, “Estoy preparado”; I’m ready).

This sentence fits neither case, so it’s “ser”, not “estar”.