Certificate of Status / Good Standing

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A Certificate of Good Standing, also called a “Certificate of Existence” or “Certificate of Authorization,” is a state-issued document that shows that your corporation or limited liability company (LLC) has met its statutory requirements and is authorized to do business in that state. Think of it as a kind of ‘snapshot’ of your business’s compliance status.

Among other things, a Certificate of Good Standing confirms that your business:

Is up-to-date on its state fee payments
Has filed an annual report
Has paid its franchise taxes
There’s a good chance you’ll need to secure a Certificate of Good Standing from time to time during the life of your business. Many companies request a Certificate of Good Standing occasionally for their own records.

A Certificate of Good Standing may also be required by:

State governments, if you’re applying for foreign qualification there
Lenders, when you’re trying to obtain financing
Banks, for certain transactions
Potential business partners or investors
You may need to present your Certificate of Good Standing in order to renew specific licenses or permits, and a Certificate of Good Standing is also important evidence when it comes time to sell your business. In addition, if you are looking to register to do business in additional states, those states may ask for a copy of your Certificate of Good Standing.

Maintaining good standing for your company is very important. Without it, a company may not be able to open a bank account, obtain financing, or apply for or renew business licenses and permits. In order to maintain good standing, a company must fully act in accordance with state law. A company can fall out of good standing if it fails to file its annual report or files it late or fails to pay any applicable annual fees to a state. Most importantly, preserving good corporate standing also protects the company’s owner from personal liability for actions of the corporation or LLC.
Financial institutions such as banks often request a Certificate of Good Standing. Also, if your company is looking to to expand into other states, your company will need to provide a a Certificate of Good Standing to those states in order to register to do business in those states.Finally, to be eligible for our $50,000 Corporate Veil Guarantee, your company would need to obtain a Certificate of Good Standing on an annual basis from the state where the company was formed and registered to do business.
A business entity is said to be in Good Standing if it has filed all appropriate paperwork with the Secretary of State (or equivalent agency) and it has paid all applicable annual fees that are due to renew its charter.
Yes. A company can order a Certificate of Good Standing from the state. A Certificate of Good Standing can also be called a Certificate of Status or Certificate of Existence, depending on the state. The document would specify that the business maintains good corporate standing, has filed an annual report (if the state requires this) and has paid all state taxes and fees.
You maintain Good Standing by ensuring compliance with your state’s laws, including fulfilling any annual report or filing requirements for the state where the company was formed and registered to do business.
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