Definition and Importance
A certificate of good standing is official certification from the state that a company is legally registered and following all rules. It shows lenders, investors, or partners that a company is trustworthy and credible, helping it expand.
Obtaining an Oregon Certificate
An Oregon certificate of good standing verifies that a limited liability company (LLC) or corporation was legally formed and has been properly maintained. The Oregon Secretary of State is responsible for issuing the good-standing certificate.
Steps to Get the Certificate
- Keep your LLC compliant.
- Order your certificate of good standing.
Reasons and Purposes for Obtaining
- Getting a bank loan
- Renewing your business license
- For tax purposes
- Officially affirming your business exists
- Certifying you’re permitted to conduct business transactions in Oregon
- Qualifying to expand in a foreign country or another state.
How to Order Your Certificate
You can obtain your certificate by requesting it from the Secretary of State. The certificate is issued after the business has paid any outstanding fees, filed an annual report, and submitted proof of insurance. The cost is $10. Your certificate will be ready to print in minutes.
How a Certificate of Good Standing Works
A certificate of good standing is important for several reasons:
- Proves legitimacy
- Allows opening bank accounts
- Partners may require it
What’s Included in the Certificate
A certificate of good standing certifies a company is properly registered, up-to-date on fees and filings, and legally permitted to operate.
Validity of the Certificate
The validity period depends on the situation. Often, requesting agencies or states determine validity, with certificates commonly lasting 60-90 days.
Eligibility and Process
Eligible Businesses
Eligible structures include corporations and LLCs.
State Handling and Costs
Each state handles certificates through the Secretary of State, with costs generally under $50.
Certificates for Individuals
A certificate of good standing proves a business is legally registered and able to operate in a state. It may also be called a certificate of existence or letter of good standing.
For UK businesses, it is requested from Companies House. LLCs and corporations must register with the state to obtain it.
Most states use the term certificate of good standing. You typically renew it yearly or after significant business changes.