Good Standing
Definition: A status showing the entity is current with required state filings and fees.
Good standing means the state considers the entity current: its annual report is filed, fees and state taxes are paid, and it has a valid registered agent. Banks, lenders, landlords and states asked to approve a foreign registration all ask for proof.
Status and standing are not always the same field
Some states show one status. Others split it. California shows a Secretary of State standing and a separate Franchise Tax Board standing. Kentucky shows status and standing in two lines. Texas shows the right to transact business through the Comptroller. Read both fields before you rely on a result.
The document
The official proof is a certificate of good standing, also called a certificate of existence, certificate of status, or certificate of fact. Most states sell it online for a small fee. Delaware is a common example where the free search hides status, so the certificate is the only way to confirm it; see the Delaware guide.
An entity that loses good standing for long enough becomes dissolved.
Related: how to verify a business, Kentucky status and standing.
Good Standing questions
How do I get a certificate of good standing?
Order it from the state agency that keeps the business register, usually online. Fees vary by state.
How long is a certificate of good standing valid?
It shows standing on the date issued. Banks and other states often accept one only if it is less than 30 to 90 days old.
Sources
- California Secretary of State, Certificates of Status
- Texas Comptroller, franchise tax account status
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