Overview of Certificate of Good Standing
A certificate of good standing is issued by the Secretary of State confirming that a business entity is duly registered and complies with state rules to operate its business.
Importance and Uses
- It verifies a company is legally formed and compliant with state requirements.
- Required for opening a bank account, getting loans, leasing commercial space, or moving a business.
- Typically renewed yearly or after significant business changes.
Obtaining a Certificate of Good Standing
To get a certificate of good standing, a company must be registered as a legal entity in the state, in good standing with corporate rules, current on tax filings, and fully compliant.
Other Names and State Specifics
- Also known as a certificate of existence, status certificate, or authorization.
- Different requirements and names in various states.
- Sole proprietorships generally do not require one.
How to Get a Certificate of Good Standing
In the USA, the certificate proves a business is legally registered and able to operate. It may also be called a certificate of existence or letter of good standing.
Alabama Specifics
- It is called a Certificate of Compliance in Alabama.
- Required for several purposes such as opening a bank account, applying for loans, or moving a business.
Georgia Specifics
- In Georgia, certified copies of formation documents can be ordered from the Secretary of State.
Conclusion
While not mandatory for all businesses, a certificate of good standing is essential for specific activities and proves a business’s legitimacy and compliance with state regulations.