Definition of Certificate of Good Standing
A certificate of good standing is a certificate issued by the Secretary of State or equivalent body confirming that a business entity is duly registered and complies with the state rules to operate its business.
Importance and Application
- A certificate of good standing certifies that a company is properly registered with the state, is up to date on all state registration fees and required document filings, and is legally permitted to engage in business activities in the state.
- Lenders and creditors likely won’t work with a business whose status isn’t verified.
- A Certificate of Good Standing or a Certificate of Existence is used by a business entity to prove that they are incorporated and legally authorized to conduct business in a particular state or jurisdiction.
Obtaining a Certificate of Good Standing
- You can request a Missouri certificate of good standing from the Secretary of State, either online, by mail, by email, by phone, or in person.
- The filing cost is $10, and online orders provide immediate access to the certificate.
- You can obtain your certificate of good standing by requesting it from your state’s business division.
Purpose and Renewal
- It shows the official existence of a registered entity and that it complies with state laws.
- You may need it to do business in another state, open a bank account, or enter contracts since it shows your business is legitimate.
- Typically, you renew it yearly or after significant business changes.
Getting a Certificate of Good Standing for a Person
- A certificate of good standing proves a business is legally registered and able to operate in a state.
- For UK businesses, it is requested from Companies House.
- Anyone can request the certificate.
- It shows the business is compliant.
- LLCs and corporations must register with the state to obtain it.