Good Standing: What It Means
Good standing is a status given by the state to businesses that are up to date on all their legal obligations.
When your business is in good standing, it means you have:
Think of it as your business's report card. A good standing status tells the world your business is legitimate and compliant.
Why Good Standing Matters
Good standing is not just a nice label. It directly affects what your business can do.
Open bank accounts
Banks often require a certificate of good standing to open or maintain business accounts.
Get business loans
Lenders check your business status before approving financing.
Sign contracts
Some contracts require proof that your business is in good standing.
Expand to other states
You need good standing in your home state before you can register in another state.
Renew licenses
Business licenses and permits often require good standing for renewal.
Avoid penalties
Falling out of good standing can result in fines, penalties, and even dissolution.
What Is a Certificate of Good Standing?
A certificate of good standing is an official document from the state. It confirms that your business is registered and has met all its legal obligations.
You may also hear it called a:
- Certificate of Existence
- Certificate of Status
- Certificate of Authorization
- Letter of Good Standing
The name varies by state, but they all serve the same purpose.
You can usually request one through the Secretary of State's office in the state where your business is registered. Fees typically range from $5 to $50.
How to Check Your Business Status
You can check your business status for free through the official state database. Here is how:
Go to the state database
Visit the Secretary of State website for the state where your business is registered.
Search for your business
Enter your business name or entity number. See our business lookup guide for detailed instructions.
Check the status field
Look for a field labeled "Status" or "Standing." It will show "Active," "Good Standing," or a similar term.
Common Reasons Businesses Lose Good Standing
Missing annual report filings
Most states require businesses to file an annual report. Missing the deadline can quickly put you out of compliance.
Unpaid state fees or taxes
Overdue filing fees, franchise taxes, or other state-required payments will affect your status.
No registered agent on file
If your registered agent resigns or your agent address becomes invalid, you can lose good standing.
Failure to update business information
Some states require you to report changes in officers, directors, or addresses.
Having a reliable registered agent helps prevent many of these issues. They forward compliance notices and annual report reminders so you never miss a deadline.
How to Get Back Into Good Standing
If your business has fallen out of good standing, do not panic. In most states, you can fix it by taking a few steps.
Important: Some states have strict deadlines for reinstatement. If too much time passes, your business may be administratively dissolved and you will need to re-form it.
Check Your Status by State
Select your state to access the official business database and check your company's standing.