Good Standing

What is Good Standing?

When a company entity is in good standing, it has fulfilled all legal obligations, including paying fees and filing papers with the U.S. state where it was founded. In addition, the state grants the company a certificate of good standing as proof of this compliance. This certificate proves that the company is legitimately registered with the state and permitted to conduct business there. In some states, a certificate of good standing is sometimes referred to as a status certificate or existence certificate.