Certificate of Good Standing: What It Is and How to Get One

A certificate of good standing is a state-issued document that confirms your business is recognized as an active entity and is meeting applicable state requirements.

The document is usually issued by the Secretary of State or another state agency that maintains business records. Depending on the state, it may show information such as the business name, entity type, formation date, and current status.

Some states use different names for the same or similar document. These may include certificate of existence or certificate of status.

The SBA notes that businesses expanding into another state may need a certificate of good standing when completing foreign qualification requirements.

An LLC certificate of good standing confirms that an LLC is active according to the records of its formation state.

Before requesting the certificate, an LLC may need to be current with required state filings, reports, taxes, or other obligations. The exact requirements depend on the state.

For example, if an LLC wants to register as a foreign business in another state, the new state may request a recent good standing certificate from the LLC’s home state.

If your LLC is not in good standing, you may need to resolve the issue before the state will issue the document.

A certificate of existence is often another name for a certificate of good standing.

The terminology depends on the state. Some states call the document a certificate of existence, while others use certificate of good standing or another term.

The purpose is generally similar. The document provides official confirmation of the business’s status with the state.

Always check the terminology used by the state where your business is registered before requesting the document.

A certificate of status is another term that some states use for a document showing the current status of a registered business.

For example, state agencies may use certificate of status, certificate of existence, or certificate of good standing for similar business records.

The name does not always tell you exactly what information the document will contain. Requirements and document details can differ by state.

If another agency, bank, or business has asked you for a specific certificate, check its requirements before ordering one.

It is usually best to request a certificate when you know another party will require it.

Some organizations may require a certificate issued within a specific period. For example, a state may request a recent certificate when a business applies for foreign qualification.

This means an older certificate may not always meet the requirement.

Before ordering, ask the receiving agency, bank, lender, or business partner how recent the certificate must be.

The exact reasons vary by state and business type.

If your business is not in good standing, check the state record to find the reason. You may need to correct the issue and complete any required filings before requesting a new certificate.

If you plan to operate your LLC or corporation in another state, you may need to complete foreign qualification.

The new state may ask for proof that your business is active in its home state. A certificate of good standing can serve this purpose when required.

The SBA explains that many states request a good standing certificate as part of the foreign qualification process, although requirements and fees vary by state.