Certificate of Good Standing Overview
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. Lenders often demand to see it for financing.
Importance and Requirements
- Proves legitimacy and allows opening bank accounts.
- Certifies a company is properly registered, up-to-date on fees and filings, and legally permitted to operate.
- Establishes compliance with registration, tax payments, and other legal obligations.
Eligibility and Application
- Eligible structures include corporations and LLCs, while sole proprietors may not qualify.
- Each state handles certificates through the Secretary of State, with costs generally under $50.
- Available for request online, by mail, or in person.
Certificate of Good Standing Pricing
In Ohio, potential creditors or investors might request a certificate of good standing for your LLC, emphasizing its importance in securing financing.
Functionality and Usage
A certificate of good standing provides official verification of a company’s compliance with state rules, acknowledging its trustworthiness to external parties. Lenders often require this certification before providing financing.