Certificate of Good Standing
A certificate of good standing is a document that proves a business is legally registered and able to operate in a specific state. It may also be referred to as a certificate of existence or letter of good standing.
- It is issued by the state and verifies that the entity is compliant with all necessary filings, fees, and requirements.
- LLCs and corporations must register with the state to obtain this certificate.
How to Obtain a Letter of Good Standing
To get a letter of good standing:
- Register legally with your state.
- Request the certificate, also known as a good standing certificate, letter of good standing, certificate of existence, or certificate of authorization.
What is a Good Standing Letter?
A good standing letter, also known as a certificate of good standing, is a document issued by the Secretary of State. It confirms that a business entity is registered and compliant with the state regulations for operation.
- The letter serves as evidence of the company’s compliance with state laws.
- It may be required for various purposes like conducting business in another state, opening a bank account, or entering contracts.
Background Information
- It ensures authorization of claims from employees against the Compensation Fund.
- Businesses must register with the Compensation Fund, submit earnings statements, and settle outstanding debts to receive this letter.
Issuance Process and Considerations
- The certificate is issued by the state’s Secretary of State.
- It can be obtained by filling out a form and paying a fee, with expedited services available in some states for an additional cost.
- Validity periods for the letter vary depending on the state.
- Online requests can expedite the process, providing the certificate faster, typically within the same or next day.