What Is a California Statement of Good Standing
A Statement of Good Standing is an official document issued by the California Secretary of State confirming that a business entity is properly formed, active, and in compliance with state filing requirements. It is sometimes called a Certificate of Status or Certificate of Good Standing in other states, but in California the Secretary of State uses the specific name "Statement of Good Standing." The document shows the entity's formation date, entity number, and current status, and it is frequently required by banks, lenders, courts, and government agencies when a business needs to prove its legal existence.
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Who Needs a Statement of Good Standing in California
Several types of business entities can request a Statement of Good Standing from the California Secretary of State, including corporations, limited liability companies (LLCs), limited partnerships, and limited liability partnerships. Sole proprietorships and general partnerships are not considered entities under California law and therefore do not receive a Statement of Good Standing, though they may need other proof of registration depending on the situation. Foreign entities registered to do business in California can also request a statement, as long as they have an active file with the Secretary of State. The entity must have all required filings current, including the Statement of Information, and must not be suspended, forfeited, or otherwise inactive.
Common Uses for the Statement
Businesses in California routinely need a Statement of Good Standing for a variety of purposes. Opening a bank account or applying for credit often requires it. Courts and government agencies may request it as proof of a business's legal status before accepting filings or processing applications. Vendors and contracting agencies sometimes ask for it before entering into agreements, and it is commonly required when a business registers to transact in another state. The statement is also used in real estate transactions, licensing applications, and legal proceedings where a party must demonstrate that the business entity is valid and in good order.
How to Obtain a Statement of Good Standing
To request a Statement of Good Standing, businesses can file through the California Secretary of State's office. The request can be submitted online via the Secretary of State's business portal, by mail, or in person. There is a fee for the certificate, which varies depending on the processing speed and the type of entity. Online requests are typically the fastest option, while mailed requests take longer. Businesses must provide the entity number or name and pay the required fee. The Secretary of State will issue the statement only if the entity's record is in good standing and all obligations are current.
Maintaining Good Standing in California
Keeping a business in good standing requires ongoing compliance with California filing obligations. Corporations must file a Statement of Information with the Secretary of State within 90 days of incorporation and then every year or every two years thereafter, depending on the entity type. LLCs and partnerships have similar periodic reporting requirements. Fees for these filings must be paid on time. If a business fails to file, it may be suspended or forfeited, which means it loses its good standing and cannot obtain a Statement of Good Standing until the overdue filings and fees are resolved. Maintaining compliance ensures the business can access the statement whenever it is needed.