What is a 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.
Importance of Certificate of Good Standing
It verifies you are a legally registered entity, up to date on all filings and fees, and permitted to do business in your state.
Obtaining a Certificate of Good Standing
LLCs and corporations must be registered with the state to obtain it.
How to Get a Certificate of Good Standing in the USA
For UK businesses, it is requested from Companies House. It shows the business is in ‘good standing’. The certificate can be requested by anyone.
Who writes a Letter of Good Standing?
Limited liability companies or corporations can get these from the Secretary of State. Banks may want them before working with a business.
Most states’ Secretary of State issues certificates through online forms, confirming being registered and up to date on fees and paperwork. Corporations, partnerships, LLCs, and limited liability partnerships can get them. Sole proprietors and general partnerships don’t qualify since they’re unincorporated.
Businesses need these when asked, like for loans or bank accounts. They expire, usually when registration renewals or filings are due. Each state has different rules and names for them, but the process to get certificates is easy, taking about a week.