CERTIFICATE OF GOOD STANDING
AUTHORIZED TO DO BUSINESS
A Certificate of Good Standing, sometimes called a Certificate of Existence or Certificate of Authorization, is a state-issued document used to demonstrate that a corporation or limited liability company (LLC) exists or is authorized to do business in the state and has complied with all state-required formalities.
WHY IT’S IMPORTANT
A Certificate of Good Standing is typically required when a company wishes to register to transact business in another state (a process called foreign qualification) and may also be required before a company can enter certain contracts or relationships. The Certificate of Good Standing sets forth:
Your company’s name
That your company is incorporated and authorized to do business in that state
That all fees, taxes and/or any applicable penalties owed the state have been paid
That the company’s most recent annual report has been filed
That Articles of Dissolution have not been filed
A Certificate of Good Standing is typically required when you want to register your corporation or LLC to transact business in another state. California New Business Bureau obtains a Certificate of Good Standing for you as part of our Foreign Qualification Service.
FOREIGN QUALIFICATION SERVICE
If your company is not in good standing with the state when a Certificate of Good Standing is requested, the state will often return a document stating that your company is in existence but is in “bad standing,” which can have a negative impact on your business.