A Certificate of Good Standing: What Is It?
A state authority will issue a Certificate of Good Standing, sometimes called a Certificate of Existence or Certificate of Status, attesting to the legal existence of a corporation or Limited Liability Company (LLC) and its compliance with all applicable state laws, including filing requirements and tax payments.
Understanding What a Certificate of Good Standing Means
A corporate document that certifies a business is in compliance with the laws of its jurisdiction is called a certificate of good standing, sometimes referred to as a “Certificate of Existence” or “Certificate of Authorization.” The document attests to the company’s legal ability to operate and its current compliance with all applicable filings, registrations, and taxes.
A company can demonstrate to state authorities that it is in good standing by presenting a certificate of good standing. The document may be referred to as a good standing certificate, certificate of compliance, certificate of existence, certificate of status, or certificate of authorization, depending on the state.
How to obtain a Good Standing Certificate
The state organization in charge of regulating the establishment and operation of businesses in a given state must issue a certificate of good standing to a business. Usually, the application process involves filling out forms, paying a fee, and sending in supporting documentation. Depending on the requirements of the state, a business may also apply for a certificate online or through mail.
The Value of a Certificate of Good Standing
An essential tool for confirming a company’s legal standing is a certificate of good standing. It is frequently required to present evidence of good standing with state authorities in order to apply for a loan, close bank accounts, or enter into contracts and partnerships. For a business to be considered legitimate, it is usually necessary to have an updated certificate for lenders, partners, and other business relationships.
