Purpose of Good Standing
A letter of good standing serves as proof of a company’s business compliance status. Use cases include opening a business bank account, attracting investors, securing a loan, or setting up a branch abroad.
How to Obtain a Letter of Good Standing
To get one, a business must be incorporated and request a Certificate from the state’s Secretary of State office. Many states have online request forms. Rather than navigating alone, clients can have legal services assist promptly. An LLC, corporation, LLP, or other eligible entity can obtain a Certificate if in good standing.
Process and Costs
The letter’s purpose and requested contents determine what to include. Legally registering with your state is first required. States have varying requirements and certificates appear slightly different. Costs typically range $10-$50 but some states charge more for expedited services. The state’s Secretary of State office or agency issues Certificates, responsible for business regulation.
This document is required if seeking a business bank account or credit card. Lenders and creditors won’t work lacking one. However, sole proprietorships can’t demonstrate good standing since they don’t register in the U.S.
To get a Certificate: Work with state government websites/mail or use paid online legal services to file documentation.