While those days are long gone, traditional loans can still come with hefty fees, penalties and interest rates. And though banks are still a favored option for those with strong credit, what happens to those that are denied a loan? Luckily there's another option available for entrepreneurs and small business owners looking to raise capital without being limited to traditional lending. Peer-to-peer lending, also called P2P, has been around for the last 20 years and has helped millions of people get funding for their businesses.
One of the most important legal documents that your business might need to obtain is known as a Certificate of Good Standing .
What Is a Certificate of Good Standing?
Broadly speaking, a Certificate of Good Standing — sometimes known as a Certificate of Existence — is a document that serves as official proof that the business is up to date and compliant with filing all the necessary paperwork and paying all the fees required by the state.
Possessing a Certificate of Good Standing shows that your business entity is still active and adhering to all statutory regulations that pertain to paying business fees, renewing operating licenses and any paperwork filing the state requires for your business entity.
These certificates are issued by a state government agency — usually the Secretary of State's office. Since they are designed to provide a “snapshot” of a business entity’s current status with the government, they are only valid for a brief window of time, usually no more than three to six months.
This is important to keep in mind, depending on the type of business endeavor you’re involved in. It might make sense to keep a valid Certificate of Good Standing on hand throughout the year, which would require your business to periodically renew it.
How to Get a Certificate of Good Standing
Getting a Certificate of Good Standing issued by the state requires a few steps. First, make sure your business is legally registered with the Secretary of State or other relevant government agency. Then, remember to file all the appropriate paperwork with the state as required throughout the course of doing business. This includes submitting annual reports and maintaining an active registered agent for the business entity as well.
Bizee offers a special service to help business owners obtain a Certificate of Good Standing by filing the necessary application paperwork on your behalf with the requisite authorities for various states. Using Bizee means you save time, and we handle the paperwork.
In some states, good standing also reflects whether you are up to date on your state tax payments. Obviously, those are always important to stay on top of, even if you aren’t applying for a Certificate of Good Standing.
If your business fails to meet the criteria for this document, be prepared to rectify this by filing the necessary paperwork and paying any penalties/outstanding fees.
If you use Bizee's Certificate of Good Standing service, we will contact you and provide details as to the status of your corporation or LLC and can even provide assistance in bringing the entity back to good standing.
