Certificate of Good Standing, also known as a “Certificate of Authorization or “Certificate of Existence,” demonstrates that your company is fully qualified and authorized to do business within a particular state. It is a certificate issued by the state authorities.
Basically, with this document, your company is listed as legally permitted to conduct business activities as a properly registered company within that particular state. However, it must be noted that the Certificate of Good Standing is a business license, which is required to be obtained to conduct business legally. Therefore, generally, a company can legally conduct business without obtaining a Certificate of Good Standing.
What Can I Do With A Certificate Of Good Standing?
Generally, a business only needs a certificate of good standing when it is asked for one. Yet, a variety of companies/institutions may ask for a Certificate of Good Standing before co-operating. With this certificate;
- You can confirm that payments of fees, such as state Franchise Tax, by your business entity is up-to-date,
- You can confirm that your company has completed an annual report. Occasionally, the following institutions will require a Certificate of Good Standing:
- State authorities (for the application of foreign qualification)
- Local jurisdictions (for the renewal of licenses)
- Lenders
- Potential partners planning to cooperate
- Banks
Does The Certificate Of Good Standing Expire?
Yes. It is not for unlimited time. It usually expires when annual documents and fees are due. Moreover, if the company's status is up to renewal, the certificate also expires when the renewal is due.
Who Issues The Certificate Of Good Standing?
It is the state where your business is registered that will issue a Certificate of Good Standing. Generally, this duty is delegated to that State’s Secretary of State. However, the name of the responsible division or agency can differ state-by-state basis. For example, in Delaware, the Division of Corporations issues the Certificates of Good Standing. ( https://icis.corp.delaware.gov , you can check here whether your company is in good standing or not. This link shows you an online results, and will not provide you a document.)
What Do I Need To Get A Certificate Of Good Standing?
It can be obtained from the state agency where your business is registered or from the state agency in the state where you're doing business as a foreign entity. To maintain a good standing status, you must pay all due State fees and completed annual tax reports.
Who Can Get It?
Since the State authorities issue the Certificate Good Standing, only business entities registered/are required to be registered with the State.
Not all types of business entities are required to register with the state. For instance, if there is a sole proprietorship, you will not obtain a Certificate of Good Standing. Whereas, for the entities registered with the State(For example, corporations and LLCs), you can indeed get a Certificate.
We can help you obtain a Certificate of Good Standing from the state. You can enjoy your time while we handle the time-consuming paperwork in jurisdictional offices for you.
