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Certificate Of Good Standing Chicago

What Is A Certificate Of Good Standing

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In Illinois, a Certificate of Good Standing is a state-issued document provided by the Secretary of State that proves your business exists and has maintained compliance with all state requirements, such as filing annual reports and paying franchise taxes. Some states refer to this document as a certificate of existence or a certificate of authorization.

Who Needs A Certificate Of Good Standing

A certificate of good standing is generally not required but may be requested from your state. This is not the same as a business license which is a requirement and must be displayed publicly at all times.

A certificate of good standing is not required for a sole proprietorship in any state. However, in some states, corporations andlimited liability companies may be required to get one. In addition, partnerships,limited partnerships, limited liability partnerships, and limited liability limited partnerships may or may not need one, depending on your state.

In most cases, the only way you require a certificate of good standing is if you are doing business with someone who needs you to have it. For example:

  • If you are applying for a loan/line of credit for your business
  • If you are seeking a line of credit for goods and services
  • If you are transferring or selling your business
  • If you are looking to do business in a state other than the one you are formed in
  • If you are soliciting funds from investors

Here is an article with more information on who needs a certificate of good standing.

What Are The Requirements To Be In Good Standing In The State Of Illinois

  • The Illinois company must be registered as a legal entity with the Illinois Secretary of State as a Corporation, LLC or LP.
  • The Illinois company cannot be in default or suspended as defined by the laws of the state of Illinois.
  • The Illinois company must have filed all reports required by the Illinois Secretary of State or any other state of Illinois agency.

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What Does It Say On An Illinois Good Standing Certificate

Along with the issuance date and signature of the Illinois Secretary of State, an Illinois Good Standing Certificate includes the following information:

“To all to whom these Presents Shall Come, Greeting:I,SECRETARY OF STATE NAME, Secretary of State of the State of Illinois, do hereby certify that I am the keeper of the records of the Department of Business Services. I certify thatCompany Name, A DOMESTIC CORPORATION, INCORPORATED UNDER THE LAWS OF THIS STATE ON Formation Date, APPEARS TO HAVE COMPLIED WITH ALL THE PROVISIONS OF THE BUSINESS CORPORATION ACT OF THIS STATE RELATING TO THE PAYMENT OF FRANCHISE TAXES, AND AS OF THIS DATE, IS IN GOOD STANDING AS A DOMESTIC CORPORATION IN THE STATE OF ILLINOIS.”

County State And Federal Business Registration

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Before you establish a business, please consult with a Corporate/Business Law Attorney or Certified Public Accountant , who specializes in your industry, for advice about what type of business entity will meet your business needs and what your legal obligations will be. The type of business entity you choose will depend on three primary factors: liability, taxation and record-keeping. Additional information may also be obtained from the U.S. Small Business Administration or SCORE Chicago.

Once you have consulted with a licensed business formation professional, and determined the most appropriate business entity for your needs, then you, or your licensed representative, must register your business entity with the proper government agency:

  • Sole Proprietors and General Partnerships, operating under an assumed name, must register with the Cook County Clerk’s Office.
  • All other business entity types , Limited Liability Partnership , Limited Liability Corporation , Corporation, or Not-for-Profit Corporation ) must register with the Illinois Secretary of State.

Accordingly, you, or your licensed representative, must also register for your business taxes with the U.S. Internal Revenue Service and Illinois Department of Revenue . The City of Chicago business tax registration is part of the business license application process. For additional information about business and tax registration, please review the chart below:

Jurisdiction

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Daliah Saper operates a cutting-edge internet and social media law practice that regularly leads local and national media outlets to solicit her commentary on emerging internet law issues involving cyberbullying, sexting, catfishing, revenge porn, anonymous online defamation, domain name and user-name squatting, privacy, and the latest business decisions made by social media platforms such as Facebook, Twitter and YouTube. As a litigator Daliah represents companies bringing or defending business and intellectual property disputes. As a transactional lawyer she helps clients choose the right business entity, drafts contracts and licensing agreements, advises onsweepstakes and contest rules, and ensures website terms of use and privacy policies are compliant, and provides comprehensive trademark and copyright counseling. Since founding Saper Law Offices in 2005, Daliah has been named a 40 Under 40 by Law Bulletin Publishing Co., a top Media & Advertising attorney by Super Lawyers Magazine 14 years in a row, and has been repeatedly recognized as a leading media and entertainment lawyer by Chambers and Partners. For the past eleven years, she also has taught entertainment and social media law at Loyola University Chicago School of Law.

Illinois Good Standing Certificate Verification Number

Each Illinois Good Standing Certificate comes with a File Number. An Illinois Certificate of Good Standing may be verified using the File Number on the Illinois Secretary of State web site. We can email you a copy of your Illinois Good Standing Certificate the same day, usually within 2-3 hours after we get your order. If the recipient of your Illinois Certificate of Good Standing requires official validation, they can go to the Illinois Secretary of State web site for quick verification. The web address to verify an Illinois Certificate of Good Standing on the Illinois Secretary of State web site is printed on each Illinois Good Standing Certificate.

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What Could Cause You To Lose Your Good Standing

Several things could cause you to lose your good standing, but all of them are factors you would know of at the time. Nothing could cause you to lose good standing secretly or without your knowledge.

For example, you could lose your good standing by:

  • Not filingannual reports as required
  • Not maintaining a registered agent or office as required
  • Not paying franchise taxes as required
  • Not making all payments in a timely fashion
  • Making mistakes in forms that are filed
  • Losing your business or occupational license
  • Criminal activity by the business or owner
  • Failing to file required documents

Suppose you have missed payments, especially to the IRS or other government entities. In that case, you will find that your application for a certificate of good standing is denied. Getting back in good standing is quite simple in most cases.

Also, the primary reasons that someone will lose their standing are failure to pay a tax or fee or failure to file a specific document. Once these situations are remedied, your good standing is reinstated. This means that it could be a matter of a few minutes to a few hours at most to get your good standing.

However, there are some situations where it may take more work to reinstate your standing. Speaking with your state agency will allow you to find out precisely what is keeping you from getting your certificate and what you need to do to fix the problem.

Here is an article about how you could lose your good standing.

About Illinois Certificate Of Good Standing Lawyers

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Our Illinois lawyers help businesses and individuals with their legal needs. A few of the major industries that represent Illinois’s economy include business services, exporting, and manufacturing.

Our platform has lawyers that specialize in certificates of good standing. A certificate of good standing is a legal document that proves your company is legally registered and legally formed or compliant in your home state. ContractCounsels approach makes legal services affordable by removing unnecessary law firm overhead.

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Are You In Good Standing Maintaining Your Association’s Incorporation

I personally goofed recently when looking into the incorporation status of a prospective client, as the Secretary of State has changed the way they post information about incorporation status on their website. Now that Ive straightened this out, I thought Id share this primer on incorporating and keeping your incorporation In Good Standing.

In order to protect individual owners from liability for the association’s business activity, it’s important for condominium associations to incorporate with the Illinois Secretary of State. The fees to incorporate your association as a Not-For-Profit entity and to maintain your incorporation in good standing are minimal and worthwhile.

The Secretary of State has recently changed the way that information is posted on this search page. The search page used to show “In Good Standing” in the Status section, which made it easy to determine if the association was current in filing their IL Annual Report. The site now indicates Active, Dissolved or Not in Good Standing in the status section.

If the status is Active, the Annual Report Filing Date and For Year fields will indicate when the report was last filed. Active is also an indication that the corporation is In Good Standing. A Certificate of Good Standing can be purchased on the site if needed .

Please note that the Annual Report Filing Date will also show 00/00/00 if the association was incorporated in the current year and has not yet had its first anniversary.

Why Do You Need An Illinois Certificate Of Good Standing

You might need a CGS for many reasons. Its not mandatory, but its pretty common to be asked to provide a CGS for the following reasons.

  • To do business outside of Illinois: An entity looking to expand outside of Illinois needs to provide an Illinois CGS to the state in which they want to operate to prove its compliance. Its a common requirement across the United States.
  • To secure funding : A funding agency might need to be sure that your business entity is in compliance before allocating funds.
  • To open a business bank account: Not every bank requests one, but be prepared for the possibility.
  • To purchase insurance for your business: Its hard to get insurance if youre not running a lawful business.
  • To sign a contract with another business or with the state: Wouldnt you want to know if your prospective business partner is doing things by the book or not?
  • To renew certain permits and licenses: This is usually state- and business-specific, so check with the relevant authorities to see which applies to you.

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What Is An Illinois Good Standing Certificate

An Illinois Good Standing Certificate is issued by the Illinois Secretary of State and is often required for loans, to renew business licenses, or for tax or other business purposes in the state of Illinois or in any other state. An Illinois Certificate of Good Standing is evidence that your Illinois business franchise – your Illinois Corporation, LLC or LP – is in Existence, is authorized to transact business in the state of Illinois, and complies with all state of Illinois business requirements and therefore is in “Good Standing” in the state of Illinois. Also known as an Illinois Certificate of Existence, an Illinois Certificate of Status or an Illinois Certificate of Authority, an Illinois Good Standing Certificate is a one page document which looks like a letter and bears the seal of the state of Illinois Secretary of State. An Illinois Good Standing Certificate is provided by the Illinois Secretary of State and is conclusive evidence of the existence of your Illinois business franchise. In most cases an Illinois Certificate of Good Standing can be valid up to a year depending on the requirements of the Good Standing Certificate requester. To obtain an Illinois Good Standing Certificate, your company must be registered as a legal entity with the Illinois Secretary of State, i.e., your company is in existence in the state of Illinois, and cannot be in default of Illinois corporate rules, or suspended by the state of Illinois.

How To Get An Illinois Certificate Of Good Standing

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A Certificate of Good Standing is a document issued by the Illinois Secretary of State showing the official existence and authority to do business in Illinois, in addition to business-related information. The certificate is only available for certain registered business entities such as the Limited Liability Company , Corporation, Limited Partnership , Limited Liability Partnership , or Not-for-Profit that is authorized to do business in Illinois.

The Certificate of Good Standing is also referred to as the Illinois Certificate of Status, Certificate of Existence, or Certificate of Authority.

A certificate is occasionally needed for the verification of a company. The most common reasons to need one includes:

  • Opening a business bank account or merchant account
  • Applying for a business loan
  • Signing up with vendors and suppliers to purchase inventory
  • Registering or renewing business licenses
  • Registering as a foreign entity in order to operate in other states

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What Is A Good Standing Certificate

A good standing certificate is a state-issued document that verifies that a registered entity is authorized to do business in a given jurisdiction. Further, the document certifies that the named entity has complied with certain statutory requirements imposed by that state. These requirements may include things such as filing requisite paperwork and paying an annual fee or tax. In some states, the analogous document may be called a status certificate or certificate of existence.

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Company Not In Good Standing

If the Illinois company is not in Good Standing and a Good Standing Certificate cannot be issued by the Division of Corporations we will instead provide a company search extract showing the current company status. This document will show if the Illinois company status is suspended, dissolved, or cancelled.

When Do You Need A Certificate Of Good Standing

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If youre buying a company or if you’re selling your own company or involved in an acquisition or merger, it is possible that you will require a Certificate of Good Standing. This will be part of the legal documentation of your business.

Generally speaking, when you apply for any line of credit , you will need good standing certification. Its also possible that some tax situations will require a Good Standing Certificate. Remember that youll still be in good standing with the State of Illinois even if you currently owe taxes, but you cannot be out of compliance with the tax process. Certain licensing requirements may also ask for good standing certification.

Another frequent need for a Certificate of Good Standing is to register to do business in another state . You will have to determine your full documentation requirements, including expirations. Some states for example require certified status to be less than 30 days old, while some allow 60 days.

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What Is An Illinois Certificate Of Good Standing

In Illinois, CGSs are issued by the Office of the Illinois Secretary of State.

This legal document states that your business entity exists, that its allowed to conduct business in Illinois, and, most of all, that its in compliance with state regulations.

Being in compliance is a fundamental requirement to obtain your CGS. If youre struggling with staying compliant, ZenBusiness is ready to lend a hand. We know how to keep you in good standing. With our worry free compliance service, you wont have to worry anymore.

What Is It Used For

Business entities use Certificate of Good Standing to prove they are incorporated and authorized to do business in the state. During the financing process, banks will often require such certificate from a business.

Typically Certificate of Good Standing might be required for the following:

  • opening bank account,
  • forming Foreign Entity in a different state,
  • selling the business,
  • to prove that a company has come back into compliance with the state of formation.

If your company fell out of compliance and has not fixed the issues that caused it then obtaining this document will show that your company does exist but is considered “in bad standing” with the state.

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