What is a Certificate of Good Standing?
A certificate of good standing is also referred to as a certificate of existence or a certificate of authorization. It declares that a company complies with state regulations.
How to Obtain a Certificate of Good Standing
To obtain it, simply request one from your state through the department where your business is registered, usually the secretary of state. You can fill out an online form, and some states charge a small fee. You must be up to date on all filings and fees for it to be issued.
Reasons for Needing a Certificate of Good Standing
You may need to provide one when working with new clients, opening bank accounts, applying for loans, or renewing business licenses.
Companies formed in a state and foreign entities registered there can obtain it. It proves incorporation and authorization to operate.
Limited liability companies, partnerships and corporations can request it. Sole proprietors and general partnerships don’t require it. Even if not officially required, try to keep your business in good standing by complying with state rules to operate, including filing documents and paying taxes and fees.