Understanding and Obtaining Good Standing CertificatesJune 04, 2010 Corporate
We here at First Corporate Solutions get a lot of inquiries about and requests for good standing certificates. Those of us in the public records industry interact with these documents all the time. Sometimes though, regular folks with no experience in corporate documents are told they need a good standing certificate and they feel lost and confused about what to do. As the title suggests, this week’s blog post aims to provide readers with an understanding of good standing certificates and some ideas on how to obtain them.
What is a Good Standing Certificate?
A good standing certificate is a state-issued document that verifies that a registered entity is authorized to do business in a given jurisdiction. Further, the document certifies that the named entity has complied with certain statutory requirements imposed by that state. These requirements may include things such as filing requisite paperwork and paying an annual fee or tax. In some states, the analogous document may be called a status certificate or certificate of existence.
What types of transactions require a Good Standing?
There are countless occasions where a person could be asked to supply a certificate of good standing for their business. Two of the most common scenarios are to register or qualify their company to transact business in another state and to open a business banking account. In both instances, a business must demonstrate that they have satisfied the requirements for their state in order to enter into this new business relationship. A good standing certificate provides proof of their compliance.
So, how can I get one?
A good standing certificate is pretty easy to get a hold of, especially if you know where to start! In most states, the Secretary of State (or equivalent office) files and maintains records for registered businesses such as corporations, limited liability companies etc and as such, they will be the issuing agency for the good standing certificate. Those in need of a good standing can work directly with the state either by mail or online or they can work with a private service company to cut through the red tape and secure priority processing of their document request.