Much like people, businesses have a reputation to uphold—so how is your reputation? Getting a good standing certificate can help promote your great reputation to customers and investors.
Though, some business people don’t see the point in getting a good standing certificate.
There are many reasons why you might need to obtain a good standing certificate. Perhaps your business is making some corporate transactions. Or, maybe you’re looking to ensure corporate compliance.
This article will provide you with all the information you need to get your good standing certificate.
What Is a Good Standing Certificate?
These certificates have been around for generations. A good standing certificate is a document that verifies your company’s legal status.
It confirms that your business is in good standing with the government. It’s also compliant with all corporate laws and regulations.
What’s the Importance of a Good Standing Certificate?
There are a few key reasons why you might want to obtain a good standing certificate for your business. To begin, it shows customers and investors that your company is legitimate and has been following all applicable laws.
It also indicates that your company is up-to-date on all its filings and regulatory requirements. This can be important for corporate transactions or when seeking funding.
Finally, a good standing certificate can help protect your company from legal action. If someone tries to sue your business, having this document can prove that you’re in good standing with the government.
When Do You Need a Good Standing Certificate?
There are many reasons why you might need to obtain a good standing certificate. Some of the most common reasons include the following.
Making Corporate Transactions
If your business is involved in any corporate transactions, such as mergers, acquisitions, or investments, you will likely need to provide a good standing certificate as proof of your company’s legitimacy.
Banks and other lending institutions often require a good standing certificate before they will extend credit to a business. This is to make sure that your business isn’t in any kind of debt before lending any money.
A good standing certificate can also help in a situation where you need to file a UCC 3 form to handle debt disputes.
Applying for Licenses or Permits
If you need to apply for a business license or permit, your good standing certificate can be used as proof of good character in order to obtain it. This may only apply in specific situations.
Maintaining Corporate Compliance
Good standing certificates are often required by law in order to maintain corporate compliance. For example, some states require businesses to file annual reports with their secretary of state’s office every year. They may need to submit a good standing certificate along with those filings.
What Are the Different Types of Good Standing Certificates?
There are a few different types of good standing certificates that your business entity might need, depending on the jurisdiction in which you operate. The most common types include the following.
Certificate of Good Standing
A certificate of good standing is the most basic type of good standing certificate and confirms that your company is in good standing with the government. It’s issued by the Secretary of State.
Certificate of Status
This document verifies that your company is still active and registered with the appropriate government agency. It may also include information about any current legal filings or outstanding debts.
Certificate of Existence
A certificate of existence confirms that your company was formed at the time it was listed on the certificate. This can be important for due diligence purposes or when verifying corporate records.
Where Can You Obtain a Good Standing Certificate?
The good standing certificate for your business can be obtained from the government agency responsible for corporate registration in your jurisdiction. This varies by country and state, so you’ll need to do some research to find out where to go.
How Can You Get a Good Standing Certificate?
To get a good standing certificate for your company, you will likely need to provide some documentation verifying its legal status.
This might include copies of your company’s articles of incorporation, filings with the state or federal government, or other relevant documents. You may also need to pay a fee depending on the issuing authority.
Can I Get a Good Standing Certificate Online?
At this time, most jurisdictions only offer good standing certificates in physical form. However, some states do allow you to request good standing certificates online. Make sure to do some online research to know for sure if your state allows for online applications.
What Are the Requirements for a Good Standing Certificate?
The requirements for good standing certificates vary by jurisdiction. In general, they include:
- The company must be registered with the appropriate government agency
- It cannot have any outstanding taxes or debts owed to the state or federal governments
- The company’s legal name and address need to match those on file with that agency (or they can be updated through this process)
How Long Does It Take to Get a Good Standing Certificate?
While most good standing certificates can be obtained within a week or two, there may be certain circumstances where it takes longer than usual due to high demand from other businesses requesting theirs as well.
Some good standing certificates may take up to a month before being issued.
How Much Does a Good Standing Certificate Cost?
The price of good standing certificates varies across jurisdictions and can be obtained for free or at little cost in some states.
There are usually fees associated with obtaining good standing certificates from other countries. Though, these costs tend not to exceed $100 USD on average (unless they need expedited processing).
Do I Need an Attorney to Get a Good Standing Certificate?
You don’t necessarily need an attorney when requesting good standing certificates. Still, it’s always helpful if you do have one handy just in case there is any confusion over how your company should proceed legally speaking while getting this document prepared.
Learn More About Getting a Good Standing Certificate
A good standing certificate can benefit your business in more ways than one. Getting this document can make your business transactions smoother in your state.
Do you want to learn other helpful business tips or more about a good standing certificate? If so, check out our blog for more articles like this.