How to Get A Certificate of Good Standing Hawaii

 

There are a lot of things required of a business to operate simply. A certificate of good standing is one of those requirements. Obtaining that certificate can vary from state to state, with some states being more straightforward to deal with than others.

If you aren’t sure what the Hawaii certificate of good standing is or how to get one, a helpful guide can go a long way. Understanding the type of business that you are – what filing entity – can be a good start on the path towards getting a certificate of good standing.

What Is a Certificate of Good Standing Hawaii?

The certificate of good standing is proof that a business is up to date on its filed documents, taxes, and other regulations pertaining to the formation of the business within the state. The regulations and requirements can vary from state to state.

Generally speaking, you can obtain a certificate of good standing through the business filing agency in your state. It could be required when it comes time to apply for a loan, open a business bank account, or raise investor funds. This is different from a business license, which is required to conduct business in that state.

When Is It Necessary to Apply for a Certificate of Good Standing?

While it is not a requirement to conduct business within the state, there are several situations in which that certificate would be required.

Applying for a business loan, raising investor funds, recruiting business partners, opening a business bank account, or applying for government-backed business loans. It is also required if you plan to register in a state other than the one where the business was formed.

So, while it is not imperative to have the certificate to run your business, there are a variety of situations in which that certificate can be beneficial. Just keep in mind that there are specific time frames required when presenting that certificate.

How to Get a Certificate of Good Standing in Your State

Thankfully, the process of getting a certificate of good standing is relatively easy. There are four simple steps to follow to let you know whether or not you need the certificate and how to obtain it if you do.

1.) Know if You Are Required to Register

The first part of the process is to know whether or not you need to be registered. This depends on the type of business entity in question. There are corporations, limited liability companies (LLC), limited liability limited partnerships (LLLP), limited liability partnerships (LLP), limited partnership (LP), partnerships, and sole proprietorships.

For corporations and limited liability companies, registration is required. There is no required registration for sole proprietorships. For the other options, it all depends on the requirements of your state. Make sure to check with your state business filing agency to see what the requirements are before moving forward.

2.) Your Business Must Meet Requirements

Of course, if you want to obtain a certificate, you must ensure that your business is currently in good standing. Those requirements depend on the state in which you are filing, but there are two things in specific that are typically required.

The first is that your business is current on any fees and taxes. The second is that you have correctly filed all required reports. If you can’t confidently answer that you are current with either, you likely won’t be able to get your certificate of good standing.

There is good news, however. If you have a business registered within your state, it is easy to check online through the state business filing agency to see what your status is.

3.) Make a Request Through the Business Filling Agency

Each state has a business filing agency that can provide a certificate of good standing. Most of the time, this will fall under the secretary of state office or a subdivision of that office. There are also some states that have an equivalent agency, one that maintains and files records.

Another thing worth considering is how you can request that certificate. Depending on the state requirements, you can do so by mail, online, email, fax, or over the phone. It also helps to know the fees, which vary exponentially from state to state. For instance, you can get it free in Colorado (and free online in Wyoming) while you would pay $50 in Nevada, with prices running the gamut in between.

4.) Be Sure Your Certificate Is Valid

There are expiration dates for these certificates, though they vary based on purpose as well as the state. A lender might want a certificate that is under 60 days old, another might allow one that is substantially older than that.
Generally speaking, the average certificate is valid for around 90 days or so. Be sure to check what the requirements are for your state as they can vary drastically. Another thing to keep in mind is registering in another state.
If you plan on registering to do business in a state where you are not currently registered, then it may be possible that you will have to not only provide a certificate of good standing from your state but register as a foreign entity. Again, this comes down to the specific requirements of each state, so do your homework.

Final Thoughts

Though it might sound like a complicated process, obtaining the proper certification isn’t all that bad. With a quick visit to your state’s business filing agency, you can generally find the answers to most questions you will have.

At the end of the day, obtaining a certificate of good standing is relatively simple and shouldn’t cost more than $50 (and that is on the high end). That certificate will allow you to show that your business is compliant in the most important ways.