When you’re running a business in California you need to make sure everything is set up properly. Failing to do so can result in fines, penalties, and legal fees you don't want to deal with. This is especially significant for small businesses or startup companies that may not have the resources to deal with these compliance issues.
The good news is that a Certificate of Good Standing in California is a simple document that helps you rest assured that your business is up to California’s standards. While this document is important for your sanity, the state also likes to view this document, and failing to have one will result in problems for you and your business.
Whether you want to start a business in California or have an existing business, learning more about what a Certificate of Good Standing is and how it works is important. Read on to learn everything you need to know.
Certificate of Good Standing California
Step 1: Meet the California Certificate of Good Standing Requirements
Step 2: Plan Your Window
Step 3: Fill Out the Paperwork for a Certificate of Status in California
Step 4: Pay the Necessary Fees
Step 5: Receive Your Certificate of Good Standing
Contents
What Is a California Certificate of Good Standing?
Before diving into how you can get one or whether you even need one at all, we need to explain what exactly a Certificate of Good Standing is.
In California, a Certificate of Good Standing is required by the state for all businesses that have to register. Its purpose is to show the state that your business is compliant with local laws, regulations, tax obligations, and much more.
What Is Another Name for a Certificate of Good Standing?
In California, the Certificate of Good Standing is known as the Certificate of Status. Therefore, a Certificate of Status is another name for a Certificate of Good Standing in California. While we may use these terms interchangeably at times, the state does not, so make sure you have the necessary paperwork filled out to avoid any problems.
Certificates of Status in California tell that state that your business is a registered legal entity and that it doesn’t have any suspensions from the tax board. It also proves that your business is legally allowed to operate in California.
Do I Need a Certificate of Good Standing for My LLC?
You may be wondering, “Does California require a Certificate of Good Standing?” California does require that all businesses that register with the state maintain a Certificate of Status for operations in California.
Entities that have to register in the state include limited liability companies (LLC), limited liability partnerships (LLP), partnerships, and corporations. So, you need a Certificate of Good Standing for any type of LLC, LLP, partnership, or corporation in California.
On the other hand, you don’t need a Certificate of Good Standing for a sole proprietorship in California. Sole proprietorships don’t have to register with the state, so you don’t need a Certificate of Status in California. This also applies to freelancers and people who work as contractors.
When Do You Need a Certificate of Good Standing in California?
You don’t always need your Certificate of Good Standing handy in California. In fact, there are many situations where you won’t need to provide it at all. While you don’t need a Certificate of Good Standing for day-to-day operations in California, that doesn’t mean you don’t need it for anything; it’s not a document you want to forget you have.
In California, you’ll likely need a Certificate of Good Standing if you want to apply for bank accounts, credit lines, or business loans. You’ll also need your Certificate of Status for the following actions:
- Purchasing an insurance plan for your business
- Entering into any private or state contracts
- Mergers, acquisitions, or selling parts of your business
- Renewing licenses or permits
- Moving your operations to another jurisdiction
These are only a handful of examples of when you might need a Certificate of Good Standing. Chances are, you may need it more than you think, so it’s important to have one.
How to Get a Certificate of Good Standing From the Secretary of State in California
Getting your Certificate of Status in California is not challenging if you follow the right steps and meet the necessary requirements. All it takes is filling out the necessary forms, sending them to the right office, and waiting for your copy.
In fact, you’ll find that the way you obtain a Certificate of Good Standing in California is similar to how you obtain a Certificate of Good Standing in other states in the USA.
That said, there may be some variations in each step depending on the type of business that you have in California. Learn more about how to obtain a Certificate of Status in California below.
Step 1: Meet the California Certificate of Good Standing Requirements
The most important part of the process is meeting the requirements for a Certificate of Good Standing in California. Your business needs to have the necessary licenses, paperwork, and anything else you may need to do business based on California’s laws.
What you need to remain compliant will vary based on the industry. For example, in the food industry, you may need to have health inspections to keep your business in good standing. Another example is if you sell alcohol, tobacco, firearms, or other regulated goods. You’ll need state licenses to ensure that you’re compliant in these cases.
Some compliance guidelines to consider include:
- Filing your annual report on time and correctly
- State licenses and fees are up to date
- If you’re a law firm, all attorneys need to be in good standing with the California Supreme Court
- Income and payroll taxes are paid and up-to-date
Meeting these requirements is important if you want to receive a Certificate of Status in California.
Step 2: Plan Your Window
When you request a Certificate of Status in California you need to make sure you’ll have it when you need it. While the state of California recognizes a Certificate of Status for one year after the request, this isn’t always true for other agencies.
For example, if you’re planning a merger or acquisition, an agency may want a certificate that’s no older than 30 days. This depends on your industry, so keep this in mind before you request the forms.
Sure, you can always get another one, but that’s another $5 down the drain.
Step 3: Fill out the Paperwork for a Certificate of Status in California
The next part of the process comes down to the paperwork. You need to fill this out here, along with any business registration certificates in California. The information should be the same across all documents that you file with the state. This will help you prevent any problems.
Information you need to include on the form varies but tends to include the name and contact information for you and your business, along with any license information you have.
Step 4: Pay the Necessary Fees
Before you can view your Certificate of Good Standing in California you need to pay the necessary fees. These can vary based on the county, but most California Certificate of Status fees are less than $10. On average, expect to pay between $5 and $10 to receive your Certificate of Status.
It’s also important to note that this isn’t a one-time fee. Whenever you need an updated copy you’ll have to pay the fee. Typically, the certificate is good for one year at the state level, but you may need one that’s less than 30 days old for some private transactions.
Step 5: Receive Your Certificate of Good Standing
California makes it easy to receive your Certificate of Good Standing. You can visit the appropriate office in your jurisdiction, request the information online, or even have it mailed to you.
In fact, California will even allow you to receive the document via fax – there can be a $5-$10 fee to receive fax documents from the state, so keep this in mind.
Certificate of Good Standing California FAQ
Do you have more questions about Certificates of Good Standing in California? If so, we have answers to the most common questions below.
How Much Is a Certificate of Good Standing in California?
A Certificate of Good Standing may vary in price based on how you go about getting it. If you file in person, expect a $10 processing fee when you submit the application.
On average, expect to pay around $5 to $10 for your Certificate of Status or Certificate of Good Standing in California. You’ll have to pay this fee along with other fees you have to pay when starting a business in California.
How Do I Get a Certificate of Good Standing in USA?
Whether you’re a foreign entity from another country or a home-grown small business, the process for getting a Certificate of Good Standing in the USA is roughly the same. To start, fill out the necessary paperwork you need in the state you plan on operating in.
Many states, California included, handle these certificates at the local level, so you need to apply for the certificate in the state where you plan on doing business.
From there, make sure you are current on all of your tax obligations and other obligations your company has; these may include inspections, licenses, and permits.
Does the US Supreme Court Issue Certificates of Good Standing?
Yes, the Supreme Court Issues Certificates of Good Standing in the United States. This also applies to state-level Supreme Courts, like some courts in California.
That said, these Certificates of Good Standing aren’t the same as a Certificate of Status in California. Certificates of Good Standing issued by the US Supreme Court are for lawyers who are in good standing with state courts.
If you’re still wondering how to request a Certificate of Good Standing from the Supreme Court, you need to do so by mail, then submit the necessary paperwork. Before that, though, you’ll want to make sure you meet the requirements.
This also applies to the California Supreme Court. If you need a Certificate of Good Standing for your law practice, you can request it by mail or visit the court in person. You also have to pay the necessary fees that apply to you at the time.
Can You Get a California Certificate of Good Standing Online?
Yes, you can get a Certificate of Good Standing in California online. To get a Certificate of Good Standing in California online, you can head over to Bizfile and request the documents.
You can also go in person to the jurisdiction where you’re applying for the certificate. It shouldn’t take more than 24 hours to view your Certificate of Good Standing if you have everything you need.
How Long Does It Take to Get a Certificate of Good Standing in California?
Typically, it takes less than 24 hours to get your Certificate of Good Standing. If you apply in person, you should have the document the next day, but if you apply through mail, it might take a few days or even weeks to get your certificate.
If you have urgent needs or need to request records, we always recommend going in person or requesting the information online.
Get Your Certificate of Good Standing in California Today
The importance of a Certificate of Status in California should never be understated. While you don’t need one for daily operations, you will need one if you want to open business accounts, take out loans, or sell portions of your business in California.
The good news is that a Certificate of Status is easy to get in California as long as your business is in good standing. You shouldn’t have any trouble as long as your entity is compliant, which comes down to having the necessary licenses, paying your taxes, and meeting any additional state, federal, or local requirements.
Once you know what you need, getting your Certificate of Status in California is as simple as applying in person, online, or through mail with the California Secretary of State. For lawyers who need a Certificate of Good Standing, you can do so through the state’s court system and Bar Association.