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.
To obtain a good stanidng letter of Corporation, LLC, Limited Partnerships or any entity, your company must be registered with the secretary of state.
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.
- Opening a bank account
- Completing official business transactions or contracts
- Filings in a new state, such as a foreign qualification
- Selling the business
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.