Certain entities may require a Certificate of Good Standing before they will do business with you. It can help you expand your business and build a strong reputation, while being denied this certificate could have negative consequences.
What Is a Certificate of Good Standing?
A Certificate of Good Standing (a.k.a. Certificate of Existence or Certificate of Status) is a state-issued document confirming that a business is authorized to operate and is in good standing with the Secretary of State. “Good standing” means they are legally compliant and are not delinquent in any fees, penalties, taxes, or other dues.
Reasons a Certificate Can Be Denied
There are many reasons a Certificate of Good Standing might be denied. The following are only a few examples.
The State Has Very Particular Filing Requirements
Some states require businesses to submit unique forms or use very particular language in a filing. If those minute details aren’t followed, it may mean automatic denial.
The Text Isn’t Legible
If the information is hard to read on paper or in digital format, it could be denied simply because they can’t be sure of what’s written.
Information Is Missing or Incomplete
All information should be provided exactly as requested. If, for example, they request an exact date, providing only the month and year could lead to a denial.
The Business Isn’t Actually in Good Standing
In some cases, business owners may not be aware of unresolved issues. Things like unpaid business taxes or failure to file a required form can cause a business to lose good standing and be denied a certificate.
What to Do If Your Certificate Is Denied
If your certificate is denied:
- Check whether a reason was listed on the denial notice. If there isn’t one listed or you need more information, contact the agency that sent the notice to determine what needs to be fixed.
- If the issue is simple, like a single missed signature or misspelled name, you may feel confident enough to correct it and file again on your own.
- If the reason seems unclear or you’re not sure how to correct it, it’s a good idea to seek informed help. At FastFilings, we can help you compile exactly what you need and get you on the path to approval.
Fast Filings Can Help You File Properly and Prevent Denial
The following are just a few reasons why filing with us is a smart, efficient way to get your certificate:
- We guide you step by step through the filing process.
- We ensure that your paperwork is complete, has no errors, and meets all state requirements, preventing unnecessary denials.
- We make it easy for entrepreneurs to identify and acquire all the documents they need to operate legally and successfully.
- Our knowledgeable staff can answer any questions you may have.
If you need to request a Certificate of Good Standing or have previously been denied one, FastFilings can help you get the job done. You can even start the filing process online right now.