The California Certificate of Good Standing, also known as the Certificate of Status, is issued by the California Secretary of State. This certificate serves as proof that a business entity is legally registered and authorized to conduct business in California. It verifies that the business is in compliance with all state regulations, including filing of necessary reports and payment of fees. Whether you’re a corporation, LLC, or nonprofit, this certificate may be required for business transactions like applying for loans or entering into contracts.
How to Obtain a Certificate of Good Standing in California
In California, you can request a Certificate of Good Standing, also called a Certificate of Status, through the California Secretary of State’s office. The process is straightforward and can be done online, by mail, or in person. Here’s how to request one:
- Visit the California Business Search portal.
- Search for your business using your entity name or Secretary of State (SOS) ID number.
- Once your business is located, submit the request for a Certificate of Good Standing by completing the form.
- Pay the applicable fee using a credit card for online requests, or a check if submitting by mail.
- Receive the certificate digitally or by mail, depending on your method of application.
California Certificate of Good Standing Costs
The costs for obtaining a Certificate of Good Standing (Certificate of Status) in California are as follows:
| Service | Cost |
|---|---|
| Certificate of Good Standing (Standard Processing) | $5 |
| Expedited Processing (Available in person) | $15 additional fee |
Processing Time for the Certificate of Good Standing in California
California offers both standard and expedited processing options for the Certificate of Good Standing. Below are the estimated processing times:
| Method | Processing Time |
|---|---|
| Online (Standard) | Immediate |
| Mail (Standard) | 2-3 business weeks |
| In-Person Expedited Processing | Same day (available in select locations) |
When Do You Need a California Certificate of Good Standing?
A Certificate of Good Standing may not be required for day-to-day business operations, but there are several scenarios where it is necessary:
- When opening a business bank account
- Applying for business loans or lines of credit
- Entering into contracts or agreements with other businesses
- Registering your business in another state (foreign qualification)
- When selling your business or transferring ownership
Many third parties, including banks and lenders, may require the certificate to be dated within the last 30 to 90 days to ensure the business is currently in good standing.
What Happens If Your Business Falls Out of Good Standing?
If your business falls out of good standing in California, it means you may have missed filing reports or failed to pay the required fees. When this happens, the state may impose penalties such as fines, suspension, or even dissolution of your business entity. To restore good standing, you will need to:
- File any overdue reports, such as the Statement of Information
- Pay any outstanding fees or penalties
- Ensure your business is in compliance with California’s corporate laws
Once the issues are resolved, you can request a new Certificate of Good Standing to confirm your compliance.
