What is a Certificate of Good Standing in Pennsylvania?
A Certificate of Good Standing confirms that a business has all necessary paperwork and fees paid. Only active businesses can have good standing status. The status can be restored by addressing any noncompliance.
Obtaining a Certificate of Good Standing
LLCs in Pennsylvania must pay $40 for a Certificate of Good Standing. It is advisable to use separate envelopes for requesting Certificates of Good Standing and Organization to prevent confusion.
When Do You Need a Certificate of Good Standing?
Financial institutions often require a Certificate of Good Standing before opening a business bank account. Additionally, it may be needed for real estate purchases and to show potential investors that the business is in good standing.
A Certificate of Good Standing, also known as a Certificate of Existence or a Certificate of Fact, confirms an entity’s compliance with state requirements and permission to conduct business.
How to Obtain a Certificate of Good Standing in Pennsylvania
- Go to the Pennsylvania Department of State website.
- Click on "Business Services" and select "LLC Subsistence Certificate."
- Fill out the form with your LLC’s information.
- Pay the $40 fee online.
Why Obtain a Certificate of Good Standing in Pennsylvania?
While not mandatory to operate a business in Pennsylvania, a Certificate of Good Standing may be required by entities you do business with. Financial institutions often request it before opening a business bank account.
Difference Between Certificates in Pennsylvania
Pennsylvania issues Subsistence Certificates for domestic filing associations and Certificates of Registration for registered foreign associations.
Do Other States Offer Certificates of Good Standing?
Different states have varying procedures and fees for obtaining Certificates of Good Standing. Michigan charges $10, while Mississippi offers them for $25. Each state may have specific requirements for acquiring the certificate.
Importance of a Certificate of Good Standing
A Certificate of Good Standing is essential for various business transactions, such as opening a bank account, applying for loans, leasing commercial space, or registering a business out of state. It signifies a company’s compliance with state regulations and payment of necessary fees.