What Is the Purpose of Letter of Good Standing?

Overview of Certificate of Good Standing

A letter of good standing confirms a business has complied with state rules such as registering an entity and paying taxes. States call this document a certificate of good standing, certificate of existence, or certificate of status.

Eligible Entities and Details

Entities eligible for this certificate include: Limited Liability Companies, Limited Partnerships, Corporations, Nonprofit Corporations, and Professional Corporations. Sole proprietorships and general partnerships cannot get a certificate as they are unincorporated.

Oregon specifically calls this certificate a “certificate of existence”. It certifies an Oregon business is in good legal standing to enter contracts.

Purpose and Benefits

A Certificate of Good Standing confirms that a company is incorporated and approved to conduct business in certain countries or states. In some nations, it may be referred to as a Certificate of Authorization or Certificate of Existence.

Information Shown on a Certificate

The following information will be displayed on a certificate of good standing:

  • The date of incorporation.
  • The names of all company directors.
  • The name of the company secretary (if applicable).
  • The registered office address.
  • Company objects (if applicable).
  • Verification that the company is up to date with filing requirements.

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