Authorized to do business

A Certificate of Good Standing, sometimes called a Certificate of Existence or Certificate of Authorization, is a state-issued document used to demonstrate that a corporation or limited liability company (LLC) exists or is authorized to do business in the state and has complied with all state-required formalities.

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A Certificate of Good Standing is typically required when a company wishes to register to transact business in another state (a process called foreign qualification) and may also be required before a company can enter certain contracts or relationships. The Certificate of Good Standing sets forth:

Your company’s name
That your company is incorporated and authorized to do business in that state
That all fees, taxes and/or any applicable penalties owed the state have been paid
That the company’s most recent annual report has been filed
That Articles of Dissolution have not been filed

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A Certificate of Good Standing is typically required when you want to register your corporation or LLC to transact business in another state. BizFilings obtains a Certificate of Good Standing for you as part of our Foreign Qualification Service.

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If your company is not in good standing with the state when a Certificate of Good Standing is requested, the state will often return a document stating that your company is in existence but is in “bad standing,” which can have a negative impact on your business.

Why would I need a Certificate of Good Standing?

Businesses often must obtain a Certificate of Good Standing before undertaking certain filings in a new state, such as a foreign qualification (registering to transact business), or before completing official business transactions or contracts, such as license renewal, selling the business or obtaining financing.

The document may also be used to prove that a company has come back into compliance with the state of incorporation or qualification. However, if you have not fixed the underlying issues that caused your company to be out of compliance in that state, obtaining this document will show that your company does exist but is considered “in bad standing” with the state.

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63 Parkhill Road, Nottingham, MD 21236

Phone number:

1888.559.7737 pH
1888.559.7737 Fx

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Monday – Friday 9AM – 5PM

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Phone: 1.443.421.0998
Fax: 1.443.421.0998
Nottingham, MD 21236
63 Parkhill Road,