Importance of Certificate of Good Standing
At some point, owners may be asked to provide a certificate of good standing, especially if they are interested in pursuing a loan or potential investor. This certificate shows that the entity is in compliance with all state requirements. Obtaining a copy runs the gamut from a simple, free online form to a pricier, expedited mail-in option. It all depends on the state the business resides in.
What does a Certificate of Good Standing Verify?
A certificate of good standing certifies that a company is properly registered with the state, is up to date on all state registration fees and required document filings, and is legally permitted to engage in business activities in the state.
Application Process and Importance
A Certificate of Good Standing (COGS) is a legal document that verifies that a business entity, such as a corporation or limited liability company (LLC), is authorized to operate in a particular state or jurisdiction. It’s also called a Certificate of Existence or a Certificate of Authorization.
How to Obtain a Certificate of Good Standing
A business must obtain a certificate of good standing from the state agency that oversees the formation and administration of businesses in that state. The application process typically requires payment of a fee, completion of forms, and submission of supporting documents. A business can also request a certificate by mail or online, depending on the state’s regulations.
Key Points to Know
- A Certificate of Good Standing (COGS) is a legal document that verifies that a business entity is authorized to operate in a specific state or jurisdiction.
- In the UK, you can obtain a copy of the Certificate of Good Standing from Companies House.
- A Certificate of Good Standing is proof your company has met all its statutory filing requirements, paid all necessary fees and charges, and is adhering to all Companies House rules.