Meaning of Good Standing for a Corporation
To qualify as being in good standing, a company must pay fees and file taxes on time. Businesses in good standing are up-to-date with payments and reports. Staying in good standing requires fulfilling responsibilities.
Requirements for Good Standing
- A certificate of good standing certifies proper registration, fees, and filings.
- Demonstrating good standing is a normal part of doing business.
Steps to Restore Good Standing
- Address any compliance issues promptly to return to good standing.
- Avoid voluntary termination to maintain good standing status.
Common Reasons for Not Being in Good Standing
- Failure to file reports or pay fees.
- Resignation of the registered agent.
Consequences of Not Being in Good Standing
- Fines, penalties, and personal liability may occur.
- Expertise is needed for reinstatement processes.
Maintaining Good Standing
- Keep a calendar of compliance deadlines.
- Stay current through annual fees and filings.