A certificate of good standing is a document that states that your company is legally registered with your state. This public record is proof that you’re authorized to do business there and that you follow all state requirements, like submitting required documents, paying taxes, and other fees.
It essentially proves that you’re a legitimate business.
This certificate is also known by other names, including a certificate of existence, a status certificate, a certificate of authorization, and a certificate of status. But “certificate of good standing” is the most common way to refer to the document.
Just as the name can vary depending on the state, the certificate can also look different. Here’s an example of what a certificate of good standing looks like in Oregon versus California.
Source: Oregon Secretary of State and California Secretary of State
Do I need a certificate of good standing?
While you’re not required to have it to legally do business in your state, you may need one if you’re going through any of these situations:
Competing for a government contract
Opening a business bank account
Insuring your business
Wooing potential business partners
Forming a contract with another company
Registering to do business in another state
Renewing certain business licenses and permits
Selling your business
Setting up a system that’ll allow you to process credit or debit payments
Many of the situations listed above are essential to growing your business, so you may want to get certified before you try to do any of those things.
While certificates of good standing aren’t mandatory, it’s still important to maintain good standing with your state. If you don’t comply with your state’s regulations, you could be fined, lose the liability protection you got from incorporating, forfeit access to state courts, and more.
How can I get a letter of good standing from my state?
Dealing with the government can be tedious at times. But it’s pretty easy to get a letter of good standing. In most cases, you can receive one within a few weeks (and sometimes immediately).
Here’s what you need to do:
1. See if your business entity is required to register with your state
You can only get a certificate of good standing if your business is registered with your state. Check your business entity below to see if you’re required to register.
Business entity | Do you need to register with your state? |
Corporation | Yes |
Limited liability company (LLC) | Yes |
Limited liability limited partnership (LLLP) | Depends on your state |
Limited liability partnership (LLP) | Depends on your state |
Limited partnership (LP) | Depends on your state |
Partnership | Depends on your state |
Sole proprietorship | No |
If you’re not sure whether you can register with your state, contact your state’s business filing agency. (See step #3.)
2. Make sure your business satisfies the other requirements
Your company must also be “in good standing” if you want a certificate. That includes maintaining your appointed registered agent, who is the company’s point of contact. While good standing requirements vary by state, in general, they cover the following:
You’re current on all your taxes and fees
You’ve filed all necessary documents, including annual reports
If your company is registered with the state, you can check its status online—usually with your state’s business filing agency.
And that brings us to the next step:
3. Request a certificate from your state’s business filing agency
You can get a certificate of good standing from the business filing agency in your state.
In many cases, this is your Secretary of State office (or one of its subdivisions). However, in some cases, you’ll need to find the equivalent agency that’s responsible for filing entities and maintaining state records.
Depending on your state, you may be able to request a certificate in person, order online, over the phone, or by mail, email, or fax.
Here’s where you can request a certificate in each state, along with state fees:
Where to Request a Certificate | Cost* |
$28 | |
Alaska Department of Commerce, Community, and Economic Development | $10 |
$10 | |
$25 | |
$5 | |
Free | |
$50 | |
$50 for a short-form certificate; $175 for a long-form certificate | |
$8.75 for corporations; $5 for LLCs | |
$20 | |
Hawaii Business Registration Division, Department of Commerce and Consumer Affairs | $7.50 |
$10.00 | |
$25 for a corporation or LLC; $5 for a not-for-profit corporation | |
$30.00 | |
$5 | |
$10 for online request; $15 for paper request | |
$10 | |
$15 | |
$30 | |
$20 | |
Free | |
$10.00 | |
$5 for a mail or in-person order; $15 for an online order | |
$25 | |
$10 | |
$5 | |
$10 | |
$50 | |
$5 | |
$25, $50, or $100, depending on your business entity and type of certificate | |
$50 for for-profit corporations; $25 for LLCs; $10 for non-profit corporations | |
$25 | |
$15 | |
$20 | |
$5 | |
$20 | |
$10 | |
$40 | |
$7 for non-profits; $22 for all other business entities; $30 for the long-form certificate | |
$10 | |
$20 | |
$20, plus possible service fee | |
$15; $25 for the long-form certificate | |
Free | |
$25 | |
$6 | |
$20 | |
Washington, D.C. Department of Consumer and Regulatory Affairs | $50 for corporations; $40 for nonprofits |
$10 | |
$10 | |
Free |
*Note that these costs reflect the filing fees as published at the time this article was written and are subject to change.
If you don’t have time to apply, you can also pay a legal service company to file for a certificate on your behalf. Bear in mind that the service fee may exceed your state’s filing fee.
4. Make sure your good standing certificate is valid for your specific use case
Certificates of good standing usually have expiration dates, which can vary by state and purpose. For example, one lender might want to see a certificate that’s no older than 60 days, while another might be fine with one that’s up to a year old.
In many cases, certificates are valid for up to 90 days. You can check with the place requesting the certificate to see if yours is valid.
If you want to do business in a state you aren’t registered in, you may need to register in that state as a foreign entity and provide a certificate of good standing from your home state. Different states may require that your certificate be dated within a certain period of time, so be sure your certificate is valid before filing with that state.
Below are the different states’ requirements:*
Less than 30 days old: Arkansas, Michigan, and Vermont
Less than 60 days old: Arizona, Hawaii, Illinois (for LLCs), Indiana, Maryland, Missouri, Nebraska, New Hampshire, Oklahoma, Oregon, Rhode Island, Tennessee, Washington, Wisconsin (for corporations), and Wyoming
Less than 90 days old: Connecticut, Florida, Georgia, Idaho, Iowa, Kansas, Louisiana, Maine, Mississippi (for corporations), North Dakota, Ohio, South Dakota, Utah, and Washington, D.C.
Less than 6 months old: California, Delaware, and North Carolina
Less than a year old: New York, Virginia, and West Virginia
Doesn’t require a certificate: Alabama, Alaska, Colorado, Kentucky, Minnesota, Pennsylvania, Texas
*Note that this list reflects the requirements as published at the time this article was written and is subject to change.
How long will it take to get my letter of good standing?
It depends. If you’re already in good standing, you may be able to download it right after paying for it, depending on your state. If you want your state to mail you a copy, you may have to wait a week or two.
Remember—if you’re not currently in good standing, you’ll need to fix that before requesting a letter.
Bottom line
While certificates of good standing aren’t required for business owners, you may need one if you ever want to compete for a government contract, apply for a business loan, get business insurance, or grow your company in another way.
The good news is that getting a certificate is usually quick and cheap. Just reach out to your state’s business filing agency for a request form to begin the process.
