A Certificate of Good Standing is official certification from the state that a company is legally registered and following all rules. It shows lenders, investors, or partners that a company is trustworthy and credible, helping it expand.
Why Get a Certificate of Good Standing
- Lenders demand to see it for financing.
- It proves legitimacy.
- It allows opening bank accounts.
- Partners may require it.
What’s Included
A Certificate of Good Standing certifies a company is properly registered, up-to-date on fees and filings, and legally permitted to operate. It confirms registration, tax payments, and compliance.
- It has other names like certificate of existence or status. But all refer to the same documentation.
- The validity period depends on the situation. Some last a business’s lifetime. Often, requesting agencies or states determine validity, commonly certificates last 60-90 days.
- Eligible structures include corporations and LLCs. Sole proprietors often don’t qualify. Each state handles certificates through the Secretary of State. Costs are generally under $50.