How to Get a Certificate of Good Standing

You’ve incorporated your Limited Liability Company, Sole Proprietorship, nonprofit, or corporation.

So what’s next in your business journey?

Well, if you want to prove that your business conforms to all state regulations, you’ll need to think about getting a Certificate of Good Standing.

If you think this is just another piece of administration to get out of the way while you focus on the important things (like making your new business grow), then you might be surprised. This important document is a gateway to securing finance, providing credibility, and your future expansion.

On this page, you’ll find out everything you need to know about getting a Certificate of Good Standing, and how IncReg can smooth the way.

What is a Certificate of Good Standing?

 

A Certificate of Good standing has the following key features:

• It’s issued by the state where you incorporated your business and shows that you’re authorized to do business there.
• You’ll need to provide your certificate when asked by certain authorities.
• Depending on your state, it may be called a Certificate of Existence, or a Certificate of Authorization

Your certificate is proof that your business or other entity is run properly and meeting all its compliance requirements. Issued by the Secretary of State’s office, it’s an important part of your business’s ID. Furthermore, having an up-to-date certificate helps build trust and reassurance with your clients and customers.

When you get your Certificate of Good Standing, it will be one of two types, and it’s important to know which type you have.

 

Long Form Certificate

 

When you get a Long Form Certificate of Good Standing, it not only attests that your business is authorized to work freely within your state, but also lists all the documents the state has on file for your business.

Short Form Certificate

A Short Form Certificate of Good Standing is sometimes called a ‘standard’ certificate. Unlike the long-form version, it doesn’t list the documents the state has verified; however, you can usually obtain a separate certificate that details these. Together, these two documents do the same job as a Long Form Certificate.

How do I get a Certificate of Good Standing?

 

Once the state has authorized your business’s incorporation, you’ll need to complete some regular tasks to maintain good standing. These vary from state to state; however, usually, you need to file your annual or biennial report, stay up-to-date on annual or biennial fees, and make sure you’re paid up with any other fees, taxes, and licenses due to the state.

You’ll need the following information to complete the form and get your certificate:

• Your formation details, including the date you formed your business.
• The address where you registered your business.
• Details of your registered agent.
• Your Tax Identification Number (TIN).

Don’t forget, IncReg’s experts can not only do this for you but also ensure that you never miss an important deadline or piece of paperwork that can risk your good standing.

 

Do all states issue Certificates of Good Standing?

 

In some states, you won’t be able to get a Certificate of Good Standing, but they will give you a different certificate that proves that your company is registered there. Typically, these are called Existence Certificates or sometimes Certificates of Fact. If this is the case in your state, you’ll still need to remain compliant with the state’s rules and regulations even though you won’t get the Certificate of Good standing to prove this.

Can my business lose its Certificate of Good Standing?

 

Failing to remain in compliance with the rules, regulations, and reporting deadlines in your state can lead to your business losing its good-standing status. Following that, you could face penalties that may result in the loss of your limited liability protection (in the case where you have a Limited Liability Company or Corporation), or even in your business being forced to close.

 

What benefits do I get from my Certificate of Good Standing?

 

As the name suggests, a Certificate of Good Standing proves that you are compliant and up-to-date with all the things your state needs so you can run your business. This is a useful document to produce if you want to reassure banks, business partners, and potential investors that you are a good risk and running a reputable business.

A further reason businesses often want to get a Certificate of Good standing is so that they can expand into other states. 

Due diligence and good standing

 

If another entity or business wants to work with yours, it is likely to have to run due diligence checks before approving any deals. For example, if you run a construction company and a client wants to place a large order with you, they will often need to complete due diligence processes before signing the contract. One of these checks will probably be to ensure that you have a current Certificate of Good Standing, which is why it’s so important to make sure you have yours on file.

Failing to have your certificate in place could lose you clients, orders, and money.

Expanding into other states

 

As your hard work and effort begin to pay off, your business will grow. Eventually, you will want to prepare to expand into other states. Expansion is a vital part of your early growth phases and it’s important that you are ready to take advantage of opportunities as soon as they arise.

To do business in another state, you’ll need to apply for ‘foreign qualification.’ Despite the name, foreign qualification relates solely to doing business in other states in the USA, not overseas.

Providing you have a Certificate of Good Standing from your business’s domestic state, you’ll qualify to receive a Certificate of Authorization from a “foreign” state. This allows you to conduct your business there as long as you remain in good standing.

Get your Certificate of Good Standing

 

The easiest way to get your Certificate of Good Standing is to instruct our experts at IncReg to take care of it for you. Not only will we:

• Check your business is fully compliant
• Ensure all your documents are prepared and in date
• File for your certificate

We can also monitor your business to ensure you remain in good standing and that you are always on top of key compliance requirements.