Glossary

Entities

Certificate of good standing

A certificate of good standing is a document issued by a US state confirming that a company legally exists and is current on its required filings and fees. Banks, payment processors, lenders and acquirers request it as evidence the company is properly maintained.

In plain terms: The state's written confirmation that your company is real and up to date.

Why it matters

You rarely need one until you urgently do — opening an account, closing a funding round, signing a large contract. You cannot obtain one if the company has fallen out of good standing, which is how a missed annual report becomes a blocked transaction.

Read the full guideCompliance

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