A certificate of good standing goes by various other names, such as certificate of existence and certificate of authority. It is a document that shows that your business is authorized to transact business in its state. This is an important document if you want to open a new bank account, enter into a contract, or sell your business. A certificate of good standing is typically issued by the secretary of state and indicates that all required filings have been made and that all taxes have been paid. Most states require businesses to renew their certificates periodically, so it’s important to keep up with the filings and payment requirements in your state. If you’re selling your business, potential buyers will often request a copy of your certificate of good standing as part of their due diligence. A clean record shows that you’ve been complying with the state’s requirements and that the business is in good standing. This can give buyers confidence that they’re getting what they expect when they purchase your business.