Certificate of Good Standing or Status

The purpose of this legal document is to confirm that a business is compliant with the legal requirements to retain rights to its business name, and the authority to conduct business within the state of incorporation. A certificate of good standing or status does not imply that a business is in good standing with the IRS or is free from any pending lawsuits.

In order to keep your business in good standing it must file its Annual or Biennial Report timely and comply with mandatory annual filings. Depending on the state, there are different reasons that can keep your business from being in good standing, such as pending issues with the Department of Labor, a rejected payment or not having an active resident agent, among others.

A good standing certificate from the home state is mandatory when filing a foreign entity when submitting an application of authority to do business in a foreign state. This document is obtained online and the fees and processing time vary from state to state.