How to Check a Company’s Good Standing Status

Checking a company’s status is an important aspect of due diligence. When partnering with a new vendor, hiring a contractor, or onboarding a new client, you want to be sure the entity is in good standing. A good standing label is a state-level status given to a company that has paid all state fees, met its tax obligations, and filed necessary reports with the relevant government agency. 

The most reliable way to confirm a company’s good standing is through official sources, such as the Department of Revenue or tax portals, the Secretary of State’s office, and business entity records. Sometimes, you may need to check a company’s good standing status in more than one state if it has business operations in multiple locations. 

What “Good Standing” Means and How It Differs from “Active”

The terms “good standing” and “active” often appear when people search for a company. While they are related and sound similar, they are not always the same. “Good standing” means a business entity exists and fully complies with all state requirements. In other words, the company is legally recognized and adheres to established rules. These include paying all state fees, staying up to date with taxes, filing annual reports on time, and maintaining a current registered agent on file.

On the other hand, “active” means a business is still recognized as a legal entity by the state and has not been dissolved. A company may be active but not in good standing if it owes state fees, is not current with taxes, or has missed filing an annual report. However, a business in good standing is always considered active.

For example, you are looking up a vendor before hiring them for supplies, only to find out through the Secretary of State’s website that the company is active but not in good standing. While the business is still legally recognized, it might not be able to sign contracts or obtain certain permits because it is not in good standing.

How to Check If an LLC or Corporation Is in Good Standing (Step by Step)

Make sure to have the following handy before you search:

Exact Legal Name

Entity ID (if applicable)

State of Business Formation/Registration

Here is how to check the status of LLCs or corporations to know if they are in good standing:

• Launch the state Secretary of State website and go to the business search page for the state where the business entity was formed.
• Open the business entity search tool. This may be named “entity search,” “corporations search,” or “business lookup,” depending on the state.
• Enter the exact legal name or entity ID in the appropriate search field and run the search.
• Click on the company’s record and navigate to the status line where you would find labels such as “inactive,” “good standing,” “revoked,” “active,” “dissolved,” or “suspended.”
• Look for the filing history and associated documents. You should find the last fee paid, last annual or biennial report date, and other administrative actions.
• Check the registered agent and address listed on the company’s record and confirm they are current and match the information given to you by the company.
• Download or order a certificate of good standing, which is sometimes called a certificate of status. You may be required to pay a small fee.
• If your deal with the LLC or corporation depends on tax standing, you may also check RecordsFinder or the state Department of Revenue or tax portal to confirm the company’s tax compliance status.

How to Find Out If a Company Is Legit 

Before signing a contract or hiring a vendor, it helps to confirm that the business is legitimate, especially by checking public records and then doing some quick cross-checks. You can start by searching the Secretary of State’s business entity registry. Then, confirm the business is listed and has an “active” or “good standing” status. Also check if its registered agent is listed in the registry record. If the company operates in a regulated industry, such as finance or healthcare, it would help to check the local or state licensing board database to confirm that their license is valid and current.

Furthermore, if the state allows it, check tax and compliance filings to confirm whether the company is current on annual reports or state taxes. Missed or late filings can indicate the company has some issues. You can go a step further to match the company’s contact details, including physical address, email address, and phone number, with the contact information listed in state records. 

Registered Agent Basics (What It Is and Why It Matters)

A registered agent is an individual or entity officially appointed to receive state notices and legal papers (subpoenas or lawsuits) on behalf of a company. State notices may include compliance notices, annual or biennial report reminders, and tax forms. A company’s registered agent must have a physical address in the state where the business is registered and must be available during business hours.

The importance of companies designating registered agents cannot be overstated. Registered agents act as official mailboxes, ensuring that government and legal documents are delivered to the appropriate company officials. Additionally, most states require every corporation or LLC to have a registered agent on file. Without one, a company may be in violation of business compliance regulations. A company’s registered agent also helps ensure that no deadlines are missed, including report filings and payment of state fees.

FAQs 

How Do I Check the Status of an LLC in Another State?

Each state maintains a record of companies registered in its jurisdiction. To check the status of an LLC in another state, visit the state’s Secretary of State (SoS) website and navigate to the business entity search portal. Enter the LLC’s exact legal name or entity ID (if available) in the appropriate field and run the search. The search results will display the company’s status. 

What if the Company Shows “Active” But Not “In Good Standing”?

If your search indicates that a company is active but not in good standing, it means the business entity is still legally recognized but has failed to meet an important requirement. This could be a warning sign. A company typically risks certain restrictions or penalties for missing annual report filings, failing to update its registered agent, or not paying required state fees.

Do I Need a Certificate of Good Standing?

You may not always need a certificate of good standing. However, you may need one when registering your business in another state, entering new contracts, opening a business bank account, or applying for financing. For example, a bank may reject an account application if the company is not in good standing. Typically, you only need a certificate of good standing if it is requested for specific purposes.

How Long Is a Certificate Valid?

A certificate of good standing is generally valid as long as a company remains compliant with state requirements. However, most agencies and organizations prefer one issued within the last few months. For example, some banks, investors, and lenders accept a certificate of good standing issued within the last 30 to 90 days. Certificates issued within the last 6 to 12 months are usually acceptable for certain state registrations and filings. It is best to check the requesting party’s requirements to determine the validity of a certificate.

Can I Find the Registered Agent for Free?

Yes, you can find a company’s registered agent free of charge on state business registries. State business registries typically show details of registered companies’ agents, including their names and physical addresses. Some may list more details.