Key facts
- A company is in good standing when its reports and state fees are filed and paid.
- Banks, lenders, buyers, licensing boards and other states ask for proof before they act.
- Proof is a certificate of good standing (in some states, a certificate of status or existence) from the Secretary of State.
- A missed annual report is the most common way a company loses it.
What it means
Good standing is not a licence or a rating. It is the state’s record that the company has filed every report and paid every fee it owes. A company that misses one is still a company, but it is no longer in good standing until it catches up.
Who asks for it
- Banks, when you open an account or apply for a loan.
- Buyers and investors, during due diligence.
- Other states, when the company registers to do business there.
- Licensing boards, landlords and large customers, before they sign.
How to prove it
The Secretary of State issues a certificate of good standing, also called a certificate of status, of existence or of fact. Most states sell it online for a small fee and issue it at once. Most recipients want one dated within the last thirty to ninety days.
How a company loses it
Usually by missing the annual report or its fee. In some states an unpaid state tax or a lapsed registered agent has the same effect. What happens next, state by state, is in missed your annual report deadline.
Is your company in good standing?
Search it by name or EIN. We show its status on the state’s record and the next report due.
Questions
Is “active” the same as “in good standing”?
Not always. Some states show a company as active while it is past due on a report. Read the status details, or order a certificate to be sure.
How long does a certificate of good standing stay valid?
It has no expiry, but it describes the company on the day it is issued, so most banks and states ask for one less than ninety days old.