Certificate of Good Standing

What is a certificate of good standing?

A certificate of good standing is a state-issued document that proves a business entity is properly registered, up to date on registration fees, and authorized to operate in a specific state. It demonstrates that the business is legitimate and compliant with state laws, including being current on state fees, taxes, and required business filings. 

Depending on the state, this document may be titled differently:

• Certificate of Existence
• Certificate of Status
• Certificate of Authorization
• Certificate of Authentication
• Letter of Good Standing
• Certificate of Compliance

While not required for daily operations, a certificate of good standing may be necessary for various business activities such as opening a business bank account, obtaining business insurance, applying for loans, or competing for government contracts. It is important to note that this certificate usually has an expiration date, often coinciding with when registration renewal or periodic filings are due.

When will I need a certificate of good standing?

Your business entity will need a certificate anytime a person or another organization requests proof that you are authorized to do business in the state. For example, certificates are often required in the following situations:

• To be approved for a bank loan
• To receive utilities from a utility company
• To rent an office space
• To register as a foreign entity authorized to do business in another state
• To compete for government contracts
• To sell your business
• To apply for business licenses