The Certificate of Good Standing is a document evidencing that an individual, partnership, corporation or other organization is in good standing with respect to any and all returns due and taxes payable to the State.

Individual or business often need proof that they are in good standing in order to obtain financing, renew licenses or enter into other business transactions. In order to obtain a Certificate of Good Standing or Tax Compliance, an individual, business or other organization must be current on all tax filings and obligations. A certificate will be issued only if the taxpayer is in full compliance.

To obtain a Good Standing Certificate, your company must be registered as a legal entity in your state and cannot be in default of corporate rules or suspended by the state.

FREQUENTLY ASKED QUESTIONS :

What is a certificate of good standing?

A. A certificate of good standing (also known as a certificate of existence, Certificate of Authorization or Certificate of Fact Status) is a document issued by a state official as evidence that a corporation or limited liability company (LLC) is in existence or authorized to transact business in the state and has satisfied all the requirements imposed by that state.

Q. Why would I need a certificate of good standing?

A. Businesses are often required to obtain a certificate of good standing in certain conditions as follow:

• filings in a new state, such as a foreign qualification,
• completing official business transactions or contracts,
• selling the business
• opening bank account

A certificate of good standing may also be used in order to prove that a company has come back into compliance with the state of formation or qualification.  However, if your company has not fixed the issues that caused it to fall out of compliance, then obtaining this document will show that your company does exist but is considered "in bad standing" with the state.

Q. Who issues Certificates of Good Standing?

A. Certificates of Good Standing for corporation or LLC are issued by the Secretary of State in which the corporation or LLC is formed, or in which the corporation or LLC has qualified as a "foreign corporation."

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