Certification of Good Standing
Are you planning to register your company in a different state? One of the important things that you may need is a certificate of good standing from your home state of incorporation or organization for a corporation and LLC respectively. It is also referred as a certificate of existence or status. If you are in good standing with your home state, you can obtain this for a corporation, LLC, LLP, LP or any other type of entity. Let’s discuss this in detail:
First of all, what is a certificate of good standing?
Certificate of Good Standing is a certificate issued by the Secretary of State’s or any equivalent agency to demonstrate that a business, that is either corporation, LLC, or partnership has complied with the appropriate provisions of the laws of the state, is in the good standing, and is authorized to negotiate business or to handle affairs within the state.
What a state is looking for a recent certificate of good standing from your home state it should mention the day your business was started. If your business is currently in existence or in good standing, it will have the Secretary of State seal on it and requires to have the latest date.
Many states expect you to provide them the copy of the certificate within 30-90 days, which means you can order it from your home state by email, fax or online and then send them the copy of the certificate. Although, there are a couple of states that want the certificate to be an actual one. But, you need not worry as these states keep a list of states that only provide this certificate online, and that will be completely fine with them.
Other names for certification of good standing:
Different names for Certificate of good standing are: “Certificate of Existence,” “Certificate of Facts,” “Certificate of Status,” “Letter of good standing.”
Qualifications required to get certificate of good standing
To get certificate of good standing, your business must be:
- registered as a legal entity in our state
- current on all tax filings and obligations. Remember that the certification will only be issued if the taxpayer is in full compliance.
- not in the default of corporate rules or suspended by the state
What does a Certificate of Good Standing include?
The certificate of good standing include the following key metrics:
- The company name and number
- The date when the company was incorporated
- A statement stating that it has been in perpetual and continuous existence since being incorporated
- A statement stating that no action is being taken by the Companies House to quit the company and dissolve it as defunct
What Is Certification of Good Standing Used For?
Certificate of good standing is used to prove that the company is incorporated and authorized to do business in the state. Also, during the financial process, banks will need the certificate of good standing from the business.
Basically, certificate of good standing would be required for the following:
- forming Foreign Entity in a different state
- opening a bank account
- selling the business
- completing an official business transaction or a contract
- to determine that the company has come back into compliance with the state of formation
If your business fell out of compliance and is unable to fix the issues that arose, then obtaining this document will definitely show that your company exists but with a “bad standing” with the state.
Do you need a registered agent?
Yes, if you’re registering in a new state, you’ll likely need a registered agent in that state. He can help you in getting a certificate of authority, registering your company with the department of revenue. All in all, having a registered agent for your business would not just help you in getting a good standing certificate for your company also it will help you with many other professional services.
A statement stating that, as far as the Registrar is informed, the company is not in liquidation or subject to an administration order and no receiver or manager of the company’s property has been elected.
Nevada Certificate of Good Standing Wyoming Certificate of Good Standing Delaware Certificate of Good Standing California Certificate of Good Standing Florida Certificate of Good Standing