The process of obtaining a certificate of good standing is different depending on the state, but generally involves requesting the certificate from the Secretary of State or equivalent office. You may need to provide proof of formation and other documentation, as well as pay any applicable fees.
Benefits and Requirements
It’s important to know your state’s certificate of good standing requirements so you can get your certificate as quickly and efficiently as possible. Benefits of Getting a Certificate of Good Standing include:
- Ensuring legal compliance as proof that an LLC has met registration requirements and is in good standing with the state.
- Protecting the company from potential liabilities or other legal issues.
- Showing lenders and creditors that the business is verified and legally compliant.
To get a certificate of good standing, you must have paid all your business taxes, filed required documents, and complied with your state’s regulations. A Rhode Island CGS indicates that a company is authorized to conduct business in the state, franchise taxes have been paid, and its paperwork is up to date with the Department of State.
How to Request and Cost
You can request a certificate of good standing either online, by mail, phone or in person from state authorities. For example, in Minnesota it costs $5 for mail or in-person orders, and $15 for online orders.
Expiration and Usage
Certificates of good standing usually expire, which can vary by state. For example, one lender might want to see a certificate that’s no older than 60 days. In many cases, certificates are valid for up to 90 days.
Obtaining a Certificate of Good Standing is a simple but sometimes necessary step in maintaining your business’s reputation and branching out your business operations into new areas. It can be useful when taking on a partner, bringing on new investors, applying for bank accounts or loans, or expanding your business into new states.
Specifics for Different Business Entities
A certificate of good standing is issued to business entities that are required to register with the state agency that regulates them, such as corporations and limited liability companies (LLCs). Sole proprietorships, which are not required to register, do not obtain a certificate.
You must legally register with your state to receive a certificate of good standing. Each certificate will look slightly different. In most cases, your Secretary of State office will issue your certificate, which typically includes your business name, type of business entity, the date your business was formed, and the Secretary of State’s seal and signature.