A letter of good standing confirms a business complies with state rules. Also known as a certificate of good standing, it’s issued by the Secretary of State. Lenders likely won’t work with uncertified businesses. You must register with your state to receive it. Requirements for getting one vary by state. Most Secretary of State offices issue it. It confirms state registration, tax payment, and regulatory compliance. To get it, businesses request from their state agency. States have different processes. It’s necessary for: opening business bank accounts, getting loans, soliciting investors, registering out-of-state, contracting, selling businesses. Employers pay annual, semiannual or monthly fees. Register the company, submit employee expenses, pay yearly/monthly fees.
How to Obtain a Certificate
How do I get a certificate of good standing in USA? A letter of good standing or a certificate of good standing is a certificate issued by the Secretary of State or equivalent body confirming that a business entity is duly registered and complies with the state rules to operate its business.
This certificate also goes by other names, including a certificate of existence, status certificate, certificate of authorization, and certificate of status. To obtain a certificate of Good Standing, each state in the U.S. has its own rules and processes. Once the legalities are completed, the respective state will offer a certificate of Good Standing with a nominal fee under the compliance management systems.
State-Specific Information
Let’s breakdown the process of obtaining the certificate of Good Standing based on different states in the U.S.:
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Alabama
- Request for the certificate of existence is made through the Alabama Secretary of State online or mail.
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New York
- Get a certificate of status by remaining compliant with state regulations and ordering by mail, fax, or phone.
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Florida
- Obtaining a Certificate of Status requires submitting a records order at a Florida Secretary of State office. You’ll receive the certificate with the state seal. Normal processing takes up to 7 days.
Some states offer a certificate of good standing from their Division of Corporations, with costs based on the type of business entity. There are online and in-person options for obtaining this certificate in many states, while some states only offer in-person options. Additionally, there are states where you can request and receive the document via fax or phone.