What Is a Certificate of Good Standing?
A Certificate of Good Standing is an official document issued by your state’s Secretary of State office to verify that your business is compliant within the state of incorporation and therefore is in “good standing.” Just like having a driver’s license or other forms of personal ID, a Certificate of Good Standing proves that your LLC or corporation is officially registered and authorized to operate in your home state.
The Good Standing Certificate is a one-page document provided by the Secretary of State and gives conclusive evidence of the status of your business entity. In many cases it can be valid up to three months.
Do I Need a Certificate of Good Standing?
In certain situations, you may be required to prove that your business exists and is in compliance with relevant laws and regulations. A Certificate of Good Standing from your state serves as this proof.
Different authorities may require a Certificate of Good Standing, including:
Simply put, the Certificate of Good Standing helps you prove that you are a law-abiding business owner who complies with the rules. It helps enhance your trustworthiness and credibility with potential partners, investors and lenders.
Obtaining a Certificate of Good Standing is a simple but sometimes necessary step in maintaining your business’s good reputation and branching out your business operations into new areas.
How Do I Get a Certificate of Good Standing?
After you form your LLC or corporation, it’s important to stay up-to-date on filing your annual report, biennial report or other required forms and compliance paperwork. To stay in good standing, your business needs to meet a few key requirements, depending on your company’s home state. These typically include:
To get a Certificate of Good Standing, you’ll need to file the appropriate form with your state, or Incfile can do it for you.
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To obtain a Good Standing Certificate, the business entity must be registered as a legal entity with the Secretary of State and cannot be in default of corporate regulations, suspended or revoked by the state.