What Is Certificate of Good Standing?

Updated January 18, 2023

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Every business, from the largest corporation to the smallest LLC, faces many hurdles as they attempt to jump through the hoops of incorporation. It’s quite the accomplishment when a company is officially filed with the government. Many businesses present themselves as meeting the standards of incorporation, without actually having accomplished them. In order to create a safeguard against misrepresentation, there is an official document that may be issued by the state of incorporation, which indicates that the business in question has meet specific standards.

By obtaining a Certificate of Good Standing (often referred to as a Certificate of Existence or Certificate of Authorization), your business will be able to verify and prove that it is authorized to conduct business in your state and that it is in full compliance with all regulations.

Why would you need this certificate?

There are times when you will need to prove you properly filed and remain in compliance. Sometimes banks require a Certificate of Good Standing. If you are going through a transaction such as a merger, sale or financing, the other party may want a Certificate of Good Standing as part of their due diligence. Essentially, any time you need to show you were properly formed and still in compliance, you will likely need a Certificate of Good Standing.

What information is included on the certificate?

The following information is typically outlined on a Certificate of Good Standing:

You organization’s official name
The fact that you are authorized to legally conduct business in the state
That your organization is current on all state taxes and fees
That your company’s annual report requirements have been observed
That the company has not recently filed an Articles of Dissolution

Other notable aspects

Should your company’s request for a Certificate of Good Standing be denied by the state your company will be considered to be in “bad standing”, but still in existence. If this is the case, it is recommended that you quickly address any ongoing compliance requirement issues that your organization may have.

Swyft can help

We can take care of the leg work for you! Swyft offers a convenient service to help you secure your certificate. Find out more about this service here. If you'd like to talk to our experienced business professionals, contact us today!

Originally published on October 29, 2022, and last edited on January 18, 2023.

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How much does it cost to form a corporation or LLC?

You can form a corporation or LLC with our help for as little as $0, plus state filing fees for incorporation. Filing fees vary depending on the state you incorporate in. For more information on specific states, check out our state guides on the Swyft Resource Center. You can also email us with specific questions or contact us at 877-777-0450.

What payment methods do you accept?

Swyft Filings accepts payment through Visa, MasterCard, American Express, PayPal, checks, and money orders. You can send any questions about payment to our email address or contact us at 877-777-0450.

Will I have to pay additional fees to Swyft Filings after completing my order?

It depends on what you ordered. If all you did was file your corporation or LLC, the price you paid when ordering is all you pay. You will have no further fees after that.

However, if you signed up for the Swyft Filings Registered Agent Service, you will be charged its initial fee three days after you place your order. From then on, you will be charged according to the terms of your subscription until you change your registered agent with the state or dissolve your company. If you change your agent or dissolve your company on your own, let us know so we can discontinue billing.

Other potential subscription-based options include SnapMailbox, 360 Legal Forms, and ComplianceGuard. If you opt for SnapMailbox or 360 Legal Forms, you will be charged a monthly fee after their respective 30-day free trials end. ComplianceGuard has an annual fee after a 14-day free trial. All three of these services are completely optional.

When will my order be processed?

Our team processes all Standard orders on a first come, first served basis. If you opt for Express or Same-Day Processing, we prioritize your order and send it to the front of the line. However, no matter how fast we get it out the door, you’ll still have to wait for your state to address your filing.

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