Good Standing Certificate

A Certificate of Good Standing (also called a Certificate of Existence or Certificate of Status) is an official document issued by a state's Secretary of State confirming that a business entity has met all statutory requirements — including filing annual reports, paying franchise taxes, and maintaining a registered agent — and is authorized to conduct business in that jurisdiction. Lenders, investors, partners, and government agencies routinely require good standing certificates as a prerequisite for financing, contract execution, licensing, and foreign qualification in new states. The certificate typically costs $10–$50 and can be obtained within 1–10 business days depending on the state's processing time and whether expedited service is purchased. Losing good standing status triggers a cascade of consequences: inability to file lawsuits or defend legal actions in some states, loss of access to state courts, disqualification from government contracts and professional licenses, and potential personal liability exposure for members and officers. In Delaware, an entity that falls out of good standing due to unpaid franchise taxes faces a $200 penalty plus 1.5% monthly interest, and after two consecutive years of non-compliance, the entity is voided — requiring costly revival proceedings ($560 filing fee plus all back taxes, penalties, and interest). Banks and payment processors frequently verify good standing status during account onboarding and annual reviews, meaning a lapse can freeze business banking and merchant processing. doola monitors good standing status across all jurisdictions, automates renewal filings, and alerts founders before compliance deadlines to prevent administrative dissolution.