Certificate of Good Standing for Business Entities
Business entities like corporations, LLCs, and partnerships can apply for official certification of their good standing.
- Registered business entities must be up-to-date on their annual reports, fees, and registered agents’ designation.
- Sole proprietorships or general partnerships are excluded as they are not registered.
When is a Certificate of Good Standing Required
- A certificate may be necessary for opening a bank account, applying for a loan, obtaining a business credit card, or setting up credit card processing for customer payments.
- Lenders and creditors typically require a certificate to verify a business’s status.
Obtaining a Certificate and Verification
- Most states issue certificates within a week with specific requirements for each entity type.
- A certificate verifies compliance with state rules and being current on reports, licenses, taxes, and fees.
- LLCs and corporations can obtain a certificate, while sole proprietorships and partnerships cannot.
Additional Information
- Certification may be required for employing workers or conducting business in multiple states.
- A DBA registration is typically requested for sole proprietorships to prove existence.