What would you say if I asked you if your business is in good standing with your state? You can’t answer that if you don’t have a certificate of good standing.
Although not always necessary, a certificate of good standing is an essential document for growing businesses. Having this document ready to go makes it easier to apply for a business loan, open a bank account, or compete for a government contract.
The even better news? Getting a good standing certificate is super simple and inexpensive. Before we get into all that, however, you should know the basics of a certificate of good standing.
What Is a Certificate of Good Standing?
A certificate of good standing is a state-approved written document that indicates, as of a certain date and for a certain period, your company is properly registered with the state and authorized to conduct business.
It has various names too, like:
Letter of Good StandingCertificate of ExistenceCertificate of AuthorizationCertificate of FactsCertificate of Status
This document is authorization proof that confirms you have the legal permit to do business in your state, and you follow all state requirements, including submitting the necessary paperwork and paying fees and taxes.
Put simply, a good standing certificate proves you are indeed a legit business. That said, it isn’t mandatory for every business, and nor does it need to be publicly displayed.
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