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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.
A Certificate of Good Standing can also be known as:
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:
- Other state governments
as part of the process of applying for Foreign Qualification for your business to register to do business in states other than your home state
- Lenders or banks
that want to get proof of your business’s existence and business history as part of evaluating your creditworthiness for a loan or when carrying out certain types of transactions
- Investors or business partners
who want to make sure your business is legitimate and in compliance with laws and regulations
- More capital
C Corps are typically much more attractive to potential investors, like venture capitalists and shareholders, because this type of business structure allows for wider ownership of the corporation.
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:
Being up-to-date on annual or biennial fees to the Secretary of State to register or renew your business
Filing annual or biennial reports
Paying any other necessary business fees or franchise taxes to state regulators
To get a Certificate of Good Standing, you’ll need to file the appropriate form with your state, or Bizee can do it for you.
Help to Obtain a Certificate of Good Standing
Save on stress and let Bizee take care of the paperwork for you (for a lower cost than other providers!)
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.
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Common Questions About Obtaining a Certificate of Good Standing
01
How Much Does a Certificate of Good Standing Cost?
Whether you need a Certificate of Good Standing for your LLC, Corporation or Nonprofit, the cost is $49 + the fees required by your state. State fees vary from $0 to $60.
02
Are There Any Hidden Costs?
No! We pride ourselves on transparency. There are absolutely no hidden costs associated with you obtaining a Certificate of Good Standing.
03
How Long Does a Certificate of Good Standing Take?
How long it takes to get a Certificate of Good Standing depends on a number of variables, but you should expect it to take anywhere from several days to several weeks.The filing time depends on the governing state agency and varies by state.
04
Are There Any Guides or Resources for Getting Started?
You can find resources related to Certificate of Good Standing here.
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