Certificates of Corporate Legitimacy
A certificate of good standing and a certificate of incumbency serve different purposes. One confirms proper company registration status, the other provides details on leadership. Both help facilitate business activities like getting financing or registering out of state.
Certificate of Good Standing
A certificate of good standing demonstrates a business is legally registered and authorized for operations. Banks or business partners may request these yearly. The certificate certifies that a company is properly registered with the state and is up to date on all state requirements. In some states, it is called a certificate of status or certificate of existence. The certificate confirms that the company is in good standing and that under the registered agent’s knowledge no action is being taken to wind up the affairs of the company.
Certificate of Incumbency
A certificate of incumbency contains details on a company’s directors and officers. It confirms identities and positions. It lists directors, shareholders, and officer titles with signature samples.
Alternative Names
QUESTION: What is another name for a certificate of good standing?
In some states, it is called a certificate of status or certificate of existence.