Certificate of Good Standing: What To Know
Your business may need a certificate of good standing for certain business actions, such as opening a business bank account, applying for a business loan or selling your business. This document essentially verifies that you’ve complied with state law and are authorized to do business there.
If your company repeatedly fails to pay taxes or file required paperwork, your state may revoke your right to operate.
Here’s everything you need to know about certificates of good standing and how to get one in your state.
What is a certificate of good standing?
A certificate of good standing shows that your business entity complies with your state’s business regulations and has no outstanding tax accounts. Other names for this document include:
- Letter of Good Standing
- Certificate of Legal Existence
- Certificate of Status
A good standing certificate differs from a business license, which you typically need to start a business. Some states impose an expiration date for certificates of standing, whereas others leave it open-ended. However, if your business entity changes, you must apply for a new certificate. Also, some organizations and lenders require you to provide a certificate issued within a specified time frame, such as the past 30 to 60 days.
You may have to pay a nominal fee for a certificate of good standing — typically no more than $50.
The exact information in your certificate of status varies from state to state. Most states require the business name, entity type and whether the business is active and authorized to conduct business within the state.
Some states include additional details. For example, the Nevada Secretary of State website provides sample certificates of existence with the option to list all organizational documents on file for your company.
Do I need a certificate of good standing?
You may need a certificate of good standing to prove your business complied with state regulations and is authorized to operate. Here’s a breakdown of when you might need one:
- Business expansion. You may need a certificate of good standing from your home state when you apply to do business in another state.
- Opening a business bank account or merchant account. The bank or credit card processor may require a certificate when you open an account to ensure your business is legitimate.
- Applying for a business loan. Lenders often request a certificate of good standing before approving financing.
- Entering contracts or partnerships. Potential vendors or business partners might require a certificate to confirm your business is in good legal standing.
- Renewing licenses or permits. Some state or local jurisdictions require proof of good standing before renewing professional or business licenses.
- Selling your business. Potential buyers might request this document to verify your business is operating legally.
How to get a certificate of good standing
The exact process for getting a certificate of good standing varies by state, but it usually looks something like this:
- Register your business. Make sure your business is registered with the appropriate state agency — usually the Secretary of State.
- Ensure you’re in compliance. Confirm your business filings, licenses and taxes are up to date.
- Submit a request. File a request for the certificate through your state’s business portal or the Secretary of State’s office.
- Pay any fees. Complete the process by paying any applicable fees.
| State | Cost | Process | Link |
|---|---|---|---|
| Alabama | $28 | Purchase a certificate online and download as a PDF. | Alabama SoS |
| Alaska | $10 | Purchase a certificate online and print it immediately. | Alaska Division of Corporations, Business and Professional Licensing |
| Arizona | $10 | Purchase a certificate online and download or print it immediately. | Arizona Corporation Commission |
| Arkansas | $25 | Purchase a certificate online and download or print it immediately. | Arkansas Secretary of State |
| California | Free | Search for the entity online and download as a PDF. | California Business Search Portal |
| Colorado | Free | Search for the entity online and print or download as a PDF. | Colorado Secretary of State |
| Connecticut | $40 to $120 | Purchase a certificate online and download immediately. | Connecticut Business.CT.gov Portal |
| Delaware | $50 to $175 | Purchase online and receive the certificate via first-class mail, Federal Express or UPS. | Delaware Division of Corporations |
| District of Columbia | $15 | Order online and print or download immediately. | District of Columbia CorpOnline portal |
| Florida | $5 to $10 | Purchase online and receive a PDF version of the certificate via email. | Florida Division of Corporations |
| Georgia | $10 to $20 | Purchase online and download as a PDF. | Georgia Secretary of State |
| Hawaii | $7.50 | Purchase online and print immediately. | Hawaii.gov |
| Idaho | Free | Purchase online and print or download immediately | Idaho Secretary of State |
| Illinois | $25 | Purchase online and print immediately | Illinois Secretary of State |
| Indiana | $21.42 | Purchase online and receive the certificate via email. | Indiana Secretary of State |
| Iowa | Free | Search for the entity online and print the certificate immediately. | Iowa Secretary of State |
| Kansas | $10 | Purchase online and print immediately. | Kansas Secretary of State |
| Kentucky | $10 | Purchase online and download or print immediately. | Kentucky Secretary of State |
| Louisiana | $20 | Purchase online and print or download immediately. | Louisiana Secretary of State |
| Maine | $30 | Purchase online and print or download immediately. | Maine Bureau of Corporations, Elections & Commissions |
| Maryland | $20 | Purchase online and print or download immediately. | Maryland Business Express Portal |
| Massachusetts | $12 | Purchase online and receive via email or regular mail. | Secretary of the Commonwealth of Massachusetts |
| Michigan | $10 | Purchase online and receive via mail or email. | Michigan Department of Licensing and Regulatory Affairs |
| Minnesota | $15 | Purchase online or receive via email. | Minnesota Secretary of State |
| Mississippi | $25 | Order online and print or download immediately. | Mississippi Secretary of State |
| Missouri | $10 | Order online and download or print immediately. | Missouri Secretary of State |
| Montana | $5 | Order online and print or download immediately. | Montana Secretary of State |
| Nebraska | $6.50 to $10 | Order online, view/print immediately or receive a certified copy via mail within 2 to 3 business days. | Nebraska Secretary of State |
| Nevada | $50 | Purchase online, via mail or fax. | Nevada’s SilverFlume Portal |
| New Hampshire | Free | Order online | New Hampshire Secretary of State |
| New Jersey | $25 to $100 | Purchase online and download or print immediately. | New Jersey Treasury |
| New Mexico | Free | Request online and download or print immediately. | New Mexico Secretary of State |
| New York | $25 | Submit a written request via mail, hand delivery or fax. Receive the certificate via mail. | New York Department of State |
| North Carolina | Free | Request online and receive the certificate via mail or encrypted email. | North Carolina Department of Revenue |
| North Dakota | $20 | Order online and download or print immediately. | North Dakota Secretary of State |
| Ohio | $5 | Order online and download or print immediately. | Ohio Secretary of State |
| Oklahoma | $20 | Order online and download or print immediately. | Oklahoma Secretary of State |
| Oregon | $10 | Order online and download or print immediately. | Oregon Secretary of State |
| Pennsylvania | $40 | Order online and download or print immediately. | Pennsylvania Department of State |
| Rhode Island | $22 | Order online and receive via email in two business days. | Rhode Island Secretary of State |
| South Carolina | $10 | Order online and download or print immediately. | South Carolina Secretary of State |
| South Dakota | $20 | Purchase online and download or print immediately. | South Dakota Secretary of State |
| Tennessee | $20 | Purchase online and print or download the certificate in PDF format. | Tennessee Secretary of State |
| Texas | $15 to $25 | Order online and print or download immediately. | Texas Secretary of State |
| Utah | $12 | Order in writing by mail, fax or in person. Receive your certificate by mail within 3 to 10 working days. | Utah Division of Corporations and Commercial Code |
| Vermont | $25 | Purchase online and print or download immediately. | Vermont Secretary of State |
| Virginia | $6 | Purchase online and download instantly. | Virginia State Corporation Commission |
| Washington | $20 | Order online and download or print immediately. | Washington Secretary of State |
| West Virginia | $10 | Purchase online and view or print the certificate immediately. | West Virginia Secretary of State |
| Wisconsin | $10 | Purchase online and print or download immediately. | Wisconsin Department of Financial Institutions |
| Wyoming | $20 | Purchase online and print or download immediately. | Wyoming Secretary of State |
Frequently asked questions
You don’t need a certificate of good standing to start or operate your business. However, you may need one for specific business purposes, like opening a business bank account, applying for a business loan or transferring ownership of your business.
Some states may require a certificate of good standing for certain business licenses and permits. For example, you must have a valid certificate of good standing to obtain a liquor license in Rhode Island.
Expiration dates for certificates of good standing vary by state. Typically, your certificate will be valid for 30 to 90 days, although some states don’t impose an expiration date. Keep in mind that banks, creditors and investors may set their own deadlines.
Regardless of whether you need a certificate of good standing, keeping your business in compliance with your state’s regulations and rules is critical. The state may place a tax lien on your property, impose fines and penalties or administratively dissolve your business if you don’t maintain good standing.
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