There’s no doubt that business reliability is necessary for a company to truly thrive. When people don’t trust an organization and don’t think they’re reliable, they’re hesitant to invest both their faith and money.
A great way to build trust and show that you’re responsible is to get a certificate of good standing in Colorado if your company is based in that state.
What is this certificate and why should you get one? And most importantly, how can you apply for this certificate? Read on to find out.
What Is a Certificate of Good Standing?
A certificate of good standing is also known as a certificate of existence. This is an official document issued by the Colorado Secretary of State, and it certifies that your company is authorized to do business in the state. It also verifies that you’re compliant with all state requirements, meaning you’ve filed all necessary reports and paid all required fees.
It’s not required to obtain a certificate of good standing when you first create your business. However, future circumstances may make it either necessary or beneficial to get one. Here are some example situations.
Opening a Business Bank Account
Financial institutions will want to see that they’re giving accounts to responsible entities, so it’s common for them to require a certificate of good standing for you to open a bank account.
This is also the case if you want to get a loan; don’t be surprised if you have to submit this certificate before you’re even considered. Lenders want to ensure that your company’s
compliant with state regulations first.
Contract Bidding
Accepting bids is a serious matter, so clients want to have peace of mind they’ve picked someone responsible and reliable. This is especially true for government contracts. A certificate of compliance will prove your company’s compliance and legitimacy.
Renewing Business Licenses or Permits
It’s reasonable that regulatory bodies will want to see business compliance before renewing your licenses and permits, even if you received these easily before. That way, if you have outstanding obligations, you’re motivated to clear them in order to get your renewals.
Doing Business in Other States
Your organization is only registered to do business in its home state (Nebraska). Should you want to operate in another state (this is called “foreign qualification”), they’ll likely require you to submit a certificate of good standing from Colorado.
Selling Your Business
No one wants to buy a company that’s riddled with legal issues. So if you’re selling your business, often, potential buyers may require a certificate of good standing. This is a normal part of their due diligence process.
How to Get a Certificate of Good Standing in Colorado
To get verification that your business is in good standing, you need to first make sure it actually is. Check that you’ve done everything to be compliant, including filing your annual reports and paying taxes. Plus, the Secretary of State should have up-to-date information from you.
Are you only researching certificates of good standing because you’re interested in starting a business, but don’t have one yet? Then check out our business registration service. In just a few days, we’ll get you up and running.
Those who already have an LLC or corporation can then follow these steps.
Access the Colorado Secretary of State’s Website
Navigate to the Colorado Secretary of State’s website. Click the dropdown menu, “Busines organizations,” then “Certificate of Good Standing.” This will bring you to the Colorado Secretary of State business search.
Search for your company by using its:
- Name
- Trademark
- Trade name
- ID
- Document number
When you see your business listed on the next page, click on it for the summary page. Select “Show entity,” and there should be a link that says “Get a certificate of good standing.” This will bring up a PDF of the document immediately.
What’s great about the state of Colorado certificate of good standing is it doesn’t cost anything to request one. In most other states, you have to pay a small fee (usually $10).
How Long Is a Certificate of Good Standing Valid?
There’s no technical expiration date on a certificate of good standing. But do note that if your business’s status changes, then the original certificate isn’t valid anymore. You’ll have to get a brand new certificate of good standing for the new entity status.
In addition, those who request the certificate may often specify that the document must not have been issued more than 30 to 90 days ago. This ensures that the verification is recent.
Request a Certificate of Good Standing in Colorado
Getting a certificate of good standing in Colorado for your business is always a good idea, especially since it’s free. If you’re already compliant, then you have nothing to lose.
Now that we’ve walked you through the steps to get a certificate of good standing, it shouldn’t take you much effort to get the document. This PDF is easy to request, and it’s useful for several scenarios. So set aside a few minutes for this task, as it’ll be hugely beneficial in the long run.
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