A Certificate of Good Standing (also known as a Certificate of Existence or Certificate of Status in some states) is an official document issued by the state that serves as proof that your company is legally registered and has complied with all state requirements.
This certificate is a vital document that is frequently required to prove your business's legitimacy and compliance status to banks, lenders, and other government agencies. Dappr offers a simple service to request and obtain this certificate from the state on your behalf.
What does "good standing" mean?
For a business to be in "good standing," it must be fully up-to-date with all of the state's mandatory filing and fee requirements. This typically means your company has:
Been legally formed and its registration is active.
Filed all required Annual Reports.
Paid all necessary state franchise taxes and fees.
Maintained a registered agent in the state.
If your company fails to meet any of these requirements, it can fall out of good standing, which can prevent you from conducting key business activities.
When you might need a Certificate of Good Standing
While you won't need this certificate for day-to-day operations, it is often a mandatory requirement for a wide range of important business transactions. Common scenarios include:
Opening a Business Bank Account: Many banks require a Certificate of Good Standing to verify that your entity is legally active before they will open an account.
Applying for a Loan or Financing: Lenders will almost always ask for this certificate to ensure they are lending money to a legitimate, compliant business.
Foreign Qualification: When you register your business to operate in a new state, that state will require a Certificate of Good Standing from your home state as part of the application.
Selling the Business or Attracting Investors: During the due diligence process, potential buyers or investors will require this certificate to verify the company's legal status.
Renewing Business Licenses and Permits: Some local or industry-specific licenses require proof of good standing with the state for renewal.
Entering into Major Contracts: Potential partners may request the certificate to verify your company's legitimacy before signing a significant contract.
How to order a Certificate of Good Standing
Dappr can handle the process of requesting and retrieving your Certificate of Good Standing from the state.
From the main menu, navigate to Business Records.
Select Legal and filing services from the top menu.
Click on the Filing services tab in the sub-menu.
Find the Cert. of Good Standing service in the list and click the Order button.
You will be guided through a short form to confirm your request.
Complete the form and proceed to payment to finalize your order.
Once your order is placed, Dappr will submit the request to the appropriate state agency. We will notify you as soon as the certificate has been issued and upload the official document to your Dappr account for your records. You can track the progress of your order from your main Dappr dashboard and in the "Orders" tab of the Legal and filing services page.