If you’ve filed your LLC or formed a corporation, you’ve probably come across the phrase “in good standing.” It’s one of those compliance terms that sounds simple but can cause big problems if ignored.
Let’s break down what “good standing” actually means, why it matters, and what you need to do to maintain it.
What Does “Good Standing” Mean?
Being “in good standing” with your state means your business is compliant with all required filings and fees. In most states, that includes:
- Filing your annual or biennial report
- Paying any franchise or business entity taxes
- Maintaining a registered agent on file
If your business has taken care of those basics, your state considers it active and in good standing. If not, your business may be listed as “delinquent,” “not in good standing,” or even “administratively dissolved.”
Why It Matters
Being in good standing is more than just checking a box. It affects your ability to:
- Open or maintain a business bank account
- Apply for financing or credit lines
- Enter into contracts or get approved for licenses
- Expand into other states
- Sell or transfer ownership of your business
Some states even require a Certificate of Good Standing before you can register as a foreign entity in another state or complete certain transactions.
What Causes a Business to Fall Out of Good Standing?
The most common culprits include:
- Missing your annual report deadline
- Failing to pay your business entity taxes or fees
- Letting your registered agent lapse
- Not updating your business address or ownership changes
In many states, once your status changes, penalties and reinstatement fees kick in quickly.
How to Check Your Good Standing Status
Many states have an online business search tool where you can look up your entity. Search for your business name and check the status—look for “active,” “in good standing,” or something similar. Some states, like Delaware, allow you to view your status for a fee.
If you’re not sure how to navigate it or need help fixing an issue, we can assist with that too.
How to Get Back Into Good Standing
If you’ve missed a filing or fee, don’t panic. Most states allow you to reinstate your business by:
- Submitting past-due reports
- Paying overdue fees (and possibly penalties)
- Filing a reinstatement form
It’s easier (and cheaper) to stay current than to play catch-up, but reinstatement is possible if you act quickly. You can learn more in our blog post, Why You Might Be Denied a Certificate of Good Standing – And How to Fix It Fast.
How URA Can Help
If URA is your registered agent, you’ll get reminders when your annual report is due. We also offer services to file it for you and help resolve any good standing issues with your state.
Want us to handle it all so you don’t have to think about compliance deadlines? Check out our ACE Service.
Final Thoughts
“Good standing” isn’t just a formality—it’s the key to keeping your business operational and protecting your legal status. Stay current with your filings, fees, and registered agent requirements to avoid disruptions.
If you need to order a certificate of good standing or want help staying on track, we’ve got you covered. Place your order for a certificate of good standing here or give us a call at (855) 236-9172.
