A certificate of good standing proves a business is legally registered and able to operate in a state. It verifies that a company is compliant on all filings, fees, and business requirements. This certificate may be referred to as a certificate of existence or letter of good standing in some states.
LLCs and corporations must register with the state to obtain it. Anyone can request the certificate, and it may be necessary for activities such as doing business in another state, opening a bank account, or entering contracts, as it shows that the business is legitimate. Typically, the certificate is renewed yearly or after significant business changes.
For UK businesses, it is requested from Companies House. In the United States, most states use the term certificate of good standing, and it is issued by the state where the business is registered.
You typically renew the certificate yearly or after significant business changes to reflect the ongoing compliance of the business with state laws.