Get a Certificate of Good Standing for your business

Is It Possible To Lose Good Standing?

If there is a failure to maintain good standing, then this is something that you will need to quickly address. There are many ways that your company can lose good standing and these include not paying franchise taxes or not paying them on time, not filing annual reports in a timely manner, not maintaining an office that is registered or a registered agent

So, if your business is not in compliance, this will result in the change of its status in the state. Now, the seriousness of these consequences would be dependent on the state your business is in since some states are more lenient than others. There are certain states that provide a lot more time than others for corrections before they place an adverse status on your business.

If your company loses good standing, then you’ll need to deal with various fines and penalties. It is even possible for your company to lose individual limited liability protection and the entity itself may be dissolved. So, as you can see, it is critical that you ensure your business is always in good standing and you should check its status at least once per month.

Conclusion

In summary, we have just covered why you need a certificate of good standing for your business and the consequences of not remaining in good standing. So, once you are in the process of setting up your business or already have one, make sure that you obtain this certificate as soon as possible.