A Certificate of Good Standing, also known as a Certificate of Existence or Certificate of Authorization, is an official document issued by the state’s Secretary of State (or similar government agency). It confirms that a business entity—such as an LLC, corporation, or nonprofit—is legally registered and compliant with all required state regulations.

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This certificate verifies that a business has:

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• Paid all required state fees and franchise taxes

• Filed necessary annual or periodic reports

• Maintained a registered agent and updated business records

• Met all statutory obligations to remain in active status​

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Because of this, a Certificate of Good Standing is often required when a business needs to:

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• Open a business bank account

• Apply for loans, grants, or financing

• Enter into contracts with other businesses or government agencies

• Register to do business in another state (foreign qualification)

• Show credibility to clients, partners, or investors 

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It’s important to note that a Certificate of Good Standing does not serve as a business license. Instead, it confirms that the company is properly registered and authorized to operate.

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Many states allow businesses to order this certificate online, and the validity period can vary depending on the state and the purpose for which it is used.