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Certificate of Good Standing |
A Certificate of Good Standing is a certificate issued by the Secretary of State’s Office evidencing that a company has complied with the applicable provisions of the laws of the state, is in good standing, and authorized to transact business or to conduct affairs within the state.
Business often needs 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 certificate of existence, 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 stanidng letter of Corporation, LLC, Limited Partnerships or any entity, your company must be registered with the secretary of state.
Other names often used for “Certificate of Good Standing” are Certificate of good standing , certificate of facts, certificate of existence, certificate of status, letter of good standing.
What is the use of certificate of good standing?
Business entities use certificate of good standing to prove their existence that they are incorporated and authorized to do business in the state. The good standing status signifies an entity is current with the filing requirements of the secretary of state’s office, as well as being current with the entity’s corporate franchise taxes. Financing During the process, banks will often need a certificate of facts from a business.
Why do I need a certificate of good standing?
A certificate of good standing or certificate of status is an official document, Businesses are in need of it in certain conditions as follow:
- Opening a bank account
- Completing official business transactions or contracts
- Filings in a new state, such as a foreign qualification
- Selling the business
A certificate of good standing may also be used 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, obtaining this document will show that your company does exist but is considered "in bad standing" with the secratary of state.
Who issues Certificates of Good Standing?
By the secratary of state
How can I obtain a certificate of good standing?
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 are suspended by the state.
