Overview
A certificate of good standing is an official document proving a business is legally registered and able to operate in a state. It is also referred to as a certificate of existence or certificate of status. Companies formed in a state and foreign entities registered in a state can obtain this certificate.
Obtaining the Certificate
To get a certificate, submit an application to the appropriate state agency. Provide the following information:
- Business name
- Address
- Registered agent information
- List of owners
Pay the fee, which ranges from $10-$100. Expedited processing costs more. Processing time can vary from a few days to weeks.
Usage and Validity
Certificates aren’t required unless requested by a bank or client. Common uses include establishing supplier/client relationships, opening overseas bank accounts, and showing certification status. The certificate comes with an expiration date, usually when registration renewal, taxes, or state fees are due. Banks often require them when financing or opening accounts for small businesses. They may also be needed when completing major transactions or contracts.
Entities use certificates of good standing to prove incorporation and authorization to do business in a state.