A Certificate of Good Standing, also called a "Certificate of Existence" or " of Authorization," is a state-issued document showing that your LLC or company has met its statutory requirements and is allowed to do business in that state.
A Certificate of Good Standing confirms that your business has paid all state fees, filled the annual report requirement, and made payments for franchise taxes. Many corporations request a Certificate of Good Standing for their own records.
A Certificate of Good Standing can also be required by state governments, should you be making use of foreign qualifications, or lenders while you're attempting to acquire financing, make transactions, and obtain potential business companions or buyers in a foreign country.
You may need to keep your Certificate of Good Standing current to be able to renew particular licenses or permits, and a Certificate of Good Standing can be necessary proof when it comes time to promote your business. Also, if you're trying to register to do business in more states, these states might ask for a copy of your Certificate of Good Standing.
Certificates of Good Standing generally contain the name of the entity, a brief clause stating that entity is allowed to do business in the jurisdiction and is relying on the jurisdiction where it was obtained, and it may also be on particular ornamental paper or have an ornamental embossed seal of some form on it to prove its authenticity.
A Certificate of Good Standing can be obtained for an LLC, company, LLP, LP, or some other sort of entity if you're in good standing with your own home state. Some states require a Certificate of Good Standing to be dated within 30 days of the date you are using it. Some states require 90 days, and there are a couple of states that require only six months' previous good standing. Most states help you provide them with a duplicate of the certificate, which means you may order it from your own home state by fax, online, or email, and mail a copy of the certificate to the requesting party.
There are a couple of states that require the certificates to be proven authentic. Those states generally have access to a listing of other states that allow you to get the Certificate of Good Standing online if you are registering in a new state. If you plan on expanding your business into a new state, then you will want to have a Certificate of Good Standing available to show the new state authority.
The following is a chart showing the cost and time frame for getting a Certificate of Good Standing in each state.
State
Cost
Time Frame