Certificate of Good Standing
A certificate of good standing (CGS) demonstrates that a company is properly registered and authorized to operate in a state. While not required to do business, it is essential for verifying legitimacy to third parties like banks. Corporations and LLCs can obtain CGSs as they are registered with states.
To obtain a CGS, the business must be registered in the state and compliant with all requirements. It enhances the company’s reputation, showcasing compliance with state laws and authorization to operate. Banks often require a CGS to confirm legitimacy when opening business accounts.
Requirements for Obtaining a CGS
The requirements for obtaining a CGS vary by state. It proves that a company has met statutory filing requirements, paid fees, and adheres to regulations, highlighting its legitimacy. CGS may be referred to as a certificate of existence or status, and only registered entities can request it.
Obtaining a CGS for Different Business Entities
For UK businesses, CGSs are requested from Companies House to demonstrate good standing status and build trust. In some regions like Pennsylvania, a certificate of subsistence serves a similar purpose, confirming compliance with laws and necessary operations maintenance.
Obtaining a CGS in the US
In the US, registered entities like corporations and LLCs can request a CGS. Before requesting, companies should ensure they are up-to-date on reports, fees, and agent registrations to confirm their eligibility.
How to Get a Certificate of Good Standing
To get a CGS, businesses need to be properly registered, compliant with state laws, and authorized to operate. Renewal is typically required yearly or following significant business changes to maintain good standing.
Cost Considerations and Resources
Costs for obtaining a CGS vary, starting at $50 for a short form in Delaware and $175 for a long form. Expedited processing incurs additional fees, providing a balance between timing advantages and legal compliance.