A letter of good standing or 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. This document may also be called a certificate of existence.
You may need it when you want to do business in another state, open a bank account or enter contracts, as it shows your business is legitimate. You typically need to renew it yearly, more often if significant business changes.
Businesses must request a Certificate of Good Standing from the state’s Secretary of State or equivalent office that is responsible for filing entities and maintaining business records in the state. Many states have an online form for requesting a Letter of Good Standing.
Corporations, partnerships, LLCs, and limited liability partnerships can get them, but sole proprietors and general partnerships don’t qualify since they’re unincorporated.
For UK businesses, it is requested from Companies House. The certificate can be requested by anyone.