Also known as a certificate of existence or a certificate of authorization, a Certificate of Good Standing is a vital document for any business. Without one, you’re going to have a tough time–essentially, the document just means you’re legally cleared to do business in your state. “Good standing” simply means that your business has paid all of its dues and are current on state-required payments, has paid required taxes, and has filed an annual report.
There are many specific occasions where you will need to produce a Certificate of Good Standing. These can include if you choose to expand your business into another state (or even country), or if you are bringing a new investor or partner on board. You may also need the Certificate of Good Standing for purely financial reasons. Many banks require them for specific types of transactions. Many more lenders will require them if you need to apply for any type of financing. Regardless of your situation, it’s just sound business practice to have a copy of your Certificate of Good Standing for your own records. You’ll probably need it to operate anyway, and you’ll want to be able to produce it easily. Royal Legal Solutions can help you meet the requirements for and obtain your Certificate today.