# Understanding the Certificate of Good Standing
A certificate of good standing proves a business is legally registered and able to operate in a state. This document may also be called a certificate of existence or letter of good standing. For UK businesses, it is requested from Companies House. It shows the business is in 'good standing'.
The certificate can be requested by anyone. Issued by the state, it verifies you are a legally registered entity, up to date on all filings and fees, and permitted to do business in your state. LLCs and corporations must be registered with the state to obtain it.
You may need it when you want to do business in another state, open a bank account, or enter contracts since it shows your business is legitimate. You typically need to renew it yearly, or more often if significant business changes occur.
# How to Obtain a Certificate of Good Standing in the USA
To get a certificate of good standing, you must legally register your business with your state. Most states use the term certificate of good standing. Non-U.S. entities, like UK businesses, request this from Companies House.
Issued by the state, it affirms that you are a legally registered entity, up to date on all filings and fees. You do not have to obtain one to do business, but it is necessary for LLCs and corporations that need to prove their legitimate status. 
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