![]() How To Get a Certificate of Good Standing in Your StateĮach state, plus Washington, D.C., has its own rules and processes regarding how business owners obtain a letter of good standing. Registering to do business in a different state.Soliciting funds from potential investors.Common reasons you might need a certificate of good standing include:: But there will likely come a time during the life of an entity when it will be necessary to procure a certificate. When Do Owners Need a Certificate of Good Standing?įor the purposes of daily business, owners do not need to worry about having a letter of good standing on hand. Because they’re not registered with the state, they can’t get a certificate of good standing. Before requesting a certificate, businesses should be up to date on their annual reports and fees and registered agent designation.īusinesses that operate as a sole proprietorship or general partnership are unincorporated. In most states, registered business entities such as corporations, partnerships, LLCs and limited liability partnerships (LLPs) are eligible to request a certificate of good standing. Who Is Eligible for a Letter of Good Standing? It should not be confused with a certificate of tax status or tax compliance, which shows that an entity is up to date on all its state tax filings and payments. They show that an entity is in compliance, or “good standing,” with the state it does business in.Ī certificate of good standing verifies that a corporation or LLC was formed legally, has been properly maintained and is still active. A Certificate of Good Standing, Letter of Good Standing, Certificate of Status and Certificate of Legal Existence are all names of documents that have the same meaning.
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