What's a Certificate of Good Standing? And How Do I Get One?

What's a Certificate of Good Standing? And How Do I Get One?

Deskera Content Team
Deskera Content Team
Table of Contents
Table of Contents

If you are a small business owner running a partnership firm or a corporation in the U.S., then there is one document that you need to obtain from the Federal Government of the United States.

Apart from meeting tax regulations and permit requirements, every organization reaches a point where they may be asked to provide this particular document, especially for purposes of pursuing a loan.

This document is known as a Certificate of Good Standing.

A Good Standing certificate certifies a company is legally registered with the state and acts as proof of the authorization to do your business in the particular state.

As far as requirements and procedures are concerned, it depends upon the state where the business resides.

In this article, we will cover the Certificate of Good Standing in detail that includes the following:

• What is a Certificate of Good Standing?

• What are the criteria set to obtain a Certificate of Good Standing?

• Why is there's need to get a Certificate of Good Standing?

• How do I get a Certificate of Good Standing?

What is a Certificate of Good Standing?

A Good Standing certificate signifies a company is registered with the state and is legally permitted to engage in business activities.

It is a document that acts as proof that the company is authorized to continue its business and follow up with the state requirements.

The certificate of Good Standing is also known as:

  • Certificate of existence
  • Status Certificate
  • Certificate of authorization
  • Certificate of status

The good Standing certificate has an expiration date that indicates the date of registration when it is to be renewed and if registration fees are to be paid.

It can be at the end of the calendar year or somewhere between the year as for the U.S. state laws.

Also, the Certificate of Good Standing is entirely different from the certificate of tax status or occupational license.

A company can legally conduct its business in the state without obtaining a certificate of Good Standing. Still, it is recommended to obtain the certificate of standing showcasing the company's existence.

What are the criteria set to obtain a Certificate of Good Standing?

In the states of U.S., registered business entities like

are eligible to request a certificate of good standing.

As far as the criteria are concerned, the registered business must file their annual reports on time and pay the yearly fees.

Along with that, the business should be registered with the authentic agent designation.

However, it is essential to note that the businesses that are a sole proprietorship or general partnership are not eligible to obtain the certificate of Good Standing.

The reason is that they are not registered with the States, and this is the sole reason why the certificate of Good Standing is not required to register in any state.

Also, if your business falls under the category mentioned above, it is recommended to keep up with the state laws that determine whether the registration is required or not.

Why is there's need to get a Certificate of Good Standing?

To carry on normal business activities, the business owners do not need to have a letter of good standing.

As it is not a legal document to do business in the state, still, there are situations where the business needs to obtain a certificate of good standing.

Let's take a look at some of the situations where the business owners need the certificate of Good Standing:

  1. For opening a business bank account
  2. For forming a contract with another company
  3. For funding the business
  4. To apply for a business loan from banks and financial institutions
  5. To compete with the government contract
  6. To meet with the insurance policies
  7. To renew specific licenses and permits
  8. To sell the business to another business
  9. To set up a system that allows you to process the credit or debit payments
  10. To register the business in another state
  11. To collaborate with the potential business partners
  12. To transfer the business to another business
  13. To solicit funds from the potential investors

One thing to note is that certificates of Good Standing are not all mandatory but, if you have the certification in your hand, you are always at the plus point.

The businesses that don't comply with the state regulations can be fined and can lose complete access to state courts.

So it's better not to take the risk and play safe for the benefit of your business.

How do I get a Certificate of Good Standing?

To obtain a certificate of good Standing, each state in the U.S. has its own rules and processes regarding how the business owners and corporations can get the Letter of Good Standing.

The certificate of good Standing is registered through websites and portals. Once the legalities are completed, the respective state will offer a certificate of Good Standing with a nominal fee under the compliance management systems.

Let's breakdown the process of obtaining the certificate of Good Standing based on different states in the U.S.:

1. Alabama

  • Request for the certificate of existence is made through the Alabama Secretary of State via online or mail.
  • The fee charged for the online submission is $28, and a formal request is $25

2. Alaska

  • Request for the certificate of compliance in Alaska by following the instructions on the division of corporations' business and professional licensing website.
  • The fee charged for the request is $10, and you can obtain the certificate online and print it accordingly.

3. Arizona

  • Request for the certificate of good standing on the ACC corporation website.
  • The processing time is two weeks, and the fee charged for the request is $10.

4. Arkansas

  • Request for the certificate of Good Standing by the Arkansas Secretary of State website.
  • The fee charged for the request is $25, and you can download the copy immediately.

5. California

  • Request for the certificate of Good Standing to the California Secretary of State.
  • The fee for the request is $5, and the request is completed within one Business day.
  • However, if you request mails, then it may take several days.

6. Colorado

  • Request for the certificate of Good Standing from the Secretary of Colorado website
  • There is no fee to obtain the good standing certificate, and this certificate can be available immediately to save or print.

7. Connecticut

  • Request for the certificate of legal assistance from the ct.gov account of Connecticut.
  • The fee charged for the certificate is $50 or $100

8. Delaware

  • Request for the certificate of standing from the Delaware Division of Corporations via email or via mail
  • The fees charged for the certificate is $50 for a short-term certificate and $175 long-term certificate

9. Florida

  • Request for the certificate of status online via the website of Florida
  • The fees charged for the certificate status is $5 for LLC's and $8.75 for corporations

10.Georgia

  • Request for the certificate of existence from the Georgia Corporation Divisions through the website.
  • The fees charged for the certification are $10 for standard processing and $64 for two-day processing.

11. Hawai

  • Request for the certificate of good standing through the hawaii.com website.
  • The fees charged for the online request form via mail cost $7.50

12. Idaho

  • Request the good Standing certificate from the Idaho Secretary of State Online portal.
  • The cost of the certificate is $10, and the time is taken to process 7 to 10 business days.

13. Illinois

  • Request on the good Standing certificate from the state of Illinois.
  • The fee to obtain the certificate is $25, where you get the option to print the certificates immediately.

14. Indiana

  • Request for the Certificate of Existence from a portal called INBiz
  • The fee to obtain the certificate is dollar 30 by mail and $26 online

15. Kansas

  • Request for a certificate of Good Standing can be easily searched by the users using the name, I.D., and keyboard in Kansas.
  • The cost of print is $10, and if you are requesting by phone or mail, the price is $15

16. Kentucky

  • The request for the certificate of good standing can be applied online at the Secretary of State's website.
  • The operation fee is $10 with an additional charge of $5 if there is a request for a return fax.

17. Louisiana

  • The request for the certificate of Good Standing should be filed with the Louisiana Secretary of State's Office by writing a request through an online medium.
  • The fees for the certificate is charged as $20

18. Maine

  • The request for the certificate of legal Existence should be made to the Interactive Corporate Services of Maine through charter number searches on the website.
  • The fees to obtain the certificate is $30

19. Maryland

  • Users can request the certificate through the Maryland Business Express site.
  • The cost of obtaining the copy is $20

20. Massachusetts

  • The request for the certificate of standing can be made from the Massachusetts Secretary of state online.
  • The fees for obtaining the certificate is $12 for corporations and $25 for LLCs

21. Michigan

  • The request to obtain the certificate of standing can be made from the Michigan Department of Licensing and Regulatory Affairs via online, mail, phone, or in person.
  • The fees for obtaining the certificate are $12.50 for in-person and $10 for others, respectively.

22. Minnesota

  • The request to obtain the Certificate of Standing can be made through the online business filing page.
  • The cost of certificates is $5 for mails and $15 for online.

23. Mississippi

  • The request to obtain the certificate of Standing can be made by creating an account on the Secretaries of State website
  • The cost of obtaining the certificate is $25

24. Missouri

  • The request to obtain the certificate of Standing can be made from the Missouri Secretary of State via online, mail, phone, or in person.
  • The cost of obtaining the certificate is $15

25. Montana

  • The request to obtain the certificate of Standing can be made from the Montana Secretary of State
  • The cost of obtaining the certificate is $5 via online orders

26. Nebraska

  • The request to obtain the certificate of Standing can be made through the Nebraska secretary of state via an online search and find center.
  • The cost of obtaining the certificates is $6.50, which made copies costing $10

27. Nevada

  • The request to obtain the Standing certificate can be made by logging in with the Nevada SilverFlume business portal.
  • The cost of obtaining the certificates is $50 for mail, email, fax request, and non-expedited certification.

28. New Hampshire

  • The request to obtain the certificate of Standing can be made through the New Hampshire Secretary of State through a quick start database.
  • The cost of obtaining the certificate is $5 for in-person and mail orders and $7 for online transactions, respectively.

29. New Jersey

  • The request to obtain the certificate of Standing is through the Department of Treasury.
  • The cost of obtaining the certificate for partnership incorporates is $25, and for LLCs and LLPs, the cost is $50 or $100

30. New York

  • The request to obtain the certificate of Standing can be made through the Department of state via mail, fax, or in-person.
  • The cost of obtaining the certificate is $25 for LLC, $10 for NPOs, and $50 for a for-profit corporation.

31. North Carolina

  • The request to obtain the certificate of Good Standing can be made through the North Carolina Secretary of State via a searchable database.
  • The cost of obtaining the certificate is $10 and to obtain the certificate by phone is $15

32. North Dakota

  • The request to obtain the certificate of Good Standing can be made through the North Dakota Secretary of State's website via email, phone, or fax.
  • The cost of obtaining the certificate is $20

33. Ohio

  • The request to obtain the certificate of Good Standing can be made through the online business portal
  • The cost of the standard copy is $5, and the long-form version is $25

34. Oklahoma

  • The request to obtain the certificate of Good Standing can be searched through the Oklahoma Secretary of State's website
  • The cost of obtaining the certificate is $20, where; the processing can take up to 4 business days

35. Oregon

  • The request to obtain the certificate of existence can be requested through the business portal
  • The cost of obtaining the certificate is $10

36. Pennsylvania

  • The request to obtain the certificate of existence can be requested through the Pennsylvania Department of State via online or email.
  • The cost of obtaining the certificate from both mediums is $40, where online processing time is less than 2 hours and for mails is 7 to 10 business days.

37. Rhode Island

  • The request to obtain the good standing certificate is through the searchable corporate database.
  • The cost of obtaining the certificate through online medium is $22, and for other filings like person or phone, it is $20

38. South Carolina

  • Request to obtain a certificate of existence is through the South Carolina business portal.
  • The cost of obtaining the certificate is $10

39. South Dakota

  • The request to obtain the certificate of Good Standing can be made through the South Dakota Secretary of State
  • The cost of obtaining the certificate is $20 and $35 for paper filings

40. Tennessee

  • The request to obtain the certificate of Good Standing can be made through the Tennessee Secretary of State via online or mail.
  • The cost of obtaining the certificate is $20

41. Texas

  • The request to obtain the certificate of fact is through the Texas Secretary of State via mail, email, and phone
  • The cost of obtaining the fact is $15 via online request and two business days for another medium

42. Utah

  • The request to obtain the certificate of existence is by the Secretary state of Utah via online, fax, or in-person through their commerce division of corporations and commercial code.
  • The cost of obtaining the certificate is $12

43. Vermont

  • The request to obtain the certificate of Standing is through the Vermont Secretary of State
  • The cost of obtaining the certificate is $25

44. Virginia

  • The request to obtain the certificate of Standing is through the Virginia Secretary of State via Clerk Information System.
  • The cost of obtaining the certificate is $6

45. Washington

  • The request to obtain the certificate of Standing is through the Washington Secretary of State Corporation Division through an online filing system.
  • The cost for obtaining the certificate is $20, with an additional $50 for expedited copies.

46. Washington D.C.

  • The request to obtain the certificate can be made by creating a profile with CorpOnline.
  • The cost of obtaining the certificate is $50

47. West Virginia

  • The request for the certificate of existence can be made through the Secretary of West Virginia via online, phone, mail, fax, or in-person.
  • The cost of obtaining the certificate is $10

48. Wisconsin

  • The request for the certificate of status can be made through the Department of Financial institutions
  • The cost of obtaining the certificate is $10 via online or mail system

49. Wyoming

  • The request for a certificate of Good Standing can be made through the Wyoming secretary of state through their website
  • There are no fees charged for downloading the certificate

Validity of Good Standing Certificate

Now coming down to the validity of good standing certificates, it is valid between 60 to 90 days.

However, it depends upon the state where the business is located.

Bottom Line

As previously mentioned, the certificate of Good Standing is not a mandatory document. Still, the business may require it if the need arises, especially for applying for loans, entering into contracts, and a number of reasons.

Since the cost of obtaining the certificate of Standing is very minimal, every business downloads the certificate easily with the respective states.

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Key Takeaways

In this article, we got you covered with the need and different procedures to obtain the Certificate of Good Standing for the organizations operating in the U.S. states.

Let us take a look at the key takeaways of the article:

  • A certificate of Good Standing is a certificate signifying that the company is registered with the state and is legally permitted to engage in business activities
  • The good standing certificate is also known as certificate of existence, status certificate, certificate of authorization, and certificate of status
  • The registered corporations, partnerships, LLCs, and LLPs operating in the U.S. are eligible to obtain the certificate of Good Standing
  • Sole proprietorships and general partnerships are not eligible for Certificate of Standing because they aren't registered with the States
  • There are multiple reasons for the need to get a good standing certificate
  • The reasons include opening a bank statement, meeting with insurance policies, collaborating with potential business partners, business transfers, or forming a contract with the government or business
  • To obtain the certificate of good Standing, each state in the U.S. has its own sets of rules and regulations
  • The registration of certificates of good Standing is done through websites and portals, and once legalities are completed, the certificates are open for download
  • The organization needs to pay a nominal fee based on the 49 States
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