What is a Certificate of Good Standing?
A Certificate of Good Standing (also called a Certificate of Existence, Certificate of Authorization, or a Certificate of Status) is a document issued by the government agency with which your company is registered. It verifies that your company exists as a legal entity, and that your company is in compliance with laws and regulations of the state in which it is registered. It also verifies that your company is authorized to transact business in the state. A Good Standing Certificate shows you have filed all the paperwork necessary for your company to operate in the state, and you have paid all fees for your company’s charter and renewal.
Why do I need a Certificate of Good Standing?
You may need to produce your Certificate of Good Standing to:
- – Open a company bank account
- – Register your company in another state or jurisdiction
- – Merge with or buy another company, or sell your own
- – Obtain certain licenses and permits
- – Display to your clients and customers to build credibility