If you’re lucky, you’re able to start a business with your own capital, with no outside help. And if you’re content with small-scale profits, then there’s not much that needs to change in the long run.
However, most entrepreneurs have ambition, meaning they want to grow their companies. This can be in terms of physical locations or connections with other professionals.
EIther way, it’s difficult to make progress without proving that you’re trustworthy. You may have built a reputation, but that may not be enough.
But with a certificate of good standing in Illinois, you can unlock opportunities. Read on to find out what this document is and how you can get one.
What Is a Certificate of Good Standing?
A certificate of good standing is something given out by the Illinois Secretary of State. It’s considered an official document and is formal proof that your business has paid all its fees, filed all necessary reports, and complied with all state regulations. This means that you’re officially in the clear to do business in Illinois.
Surprisingly enough, it’s not a mandatory document to have. But you’ll probably run into many scenarios where you’ll be asked to show a certificate of good standing, especially if you want to expand your business. Here are some of the more common situations where this might happen.
Licensing and Permits
It’d be a huge mistake to give out licenses and permits to businesses that aren’t in good standing. If they can still receive these things, then they have no incentive to be compliant. This is why some professional licenses and certifications might require this certificate as part of the renewal process—to confirm that you’re allowed to operate.
Banking Transactions
When opening a business bank account, applying for a loan, or engaging in other financial transactions, banks will often require a certificate of good standing from you. This is to check that your business is legitimate and compliant with state laws.
Business Transactions
Often, businesses will deal with mergers, acquisitions, and other significant deals. The other parties will probably request this document as part of their due diligence process.
Contracts
Certain contracts might require a certificate of good standing to verify that your business is legally compliant. This is especially true for those with government agencies or large corporations, as there’s a lot at stake.
Investors and Shareholders
This is another situation where huge sums of money are involved, and reputations are on the line as well. So it’s reasonable for potential investors and shareholders to want to see proof that everything’s all in order before they commit to your business.
Foreign Qualification
Are you planning on expanding your business into other states? Then that’s considered foreign qualification, and the other states will ask for an IL certificate of good standing. That way, they have peace of mind knowing that the company they’re allowing into their state won’t be delinquent on important matters.
How to Get a Certificate of Good Standing in Illinois
You won’t be issued a State of Illinois certificate of good standing if you haven’t kept up with administrative work. If you already know that, then take the necessary steps to get in good standing, such as filing paperwork and filing fees. Otherwise, you can speak with a tax and/or legal professional to learn more about your company’s status.
If you don’t even have an active company running yet, not to worry. Use our business registration service to set up an LLC or corporation with ease. We can have your paperwork done within a few business days.
Once you’re sure that your business is compliant with all state requirements, then you can take the following steps to get your certificate of good standing in Illinois.
Visit the Illinois Secretary of State’s Website
To start, you’ll use the Illinois Secretary of State business search. When you click on “Purchase a certificate,” it’ll bring you to the business entity search page. Choose a search method, including:
- Business name
- Registered agent
- President
- Secretary
- Manager
- File number
- Keyword
- Partial word
Find your business on the results page and click on the option to purchase a certificate of good standing. It’ll cost $25 for corporations and LLCs, and $5 for not-for-profit organizations.
After you’ve purchased the document, you can either print it in two ways. The first is from the last receipt page you’ll see, or you can use the link given in the confirmation email.
Offline Methods
If you don’t prefer to use online methods to request this document, then there are several other ways you can get it.
The first is by mail. Obviously, this will take longer, so you can pay an extra $20 to expedite service. You’ll want to put down your phone number and availability in case the office needs to contact you.
The second is by fax. You’ll have to pay an additional $1 since they’ll have to process your credit card. When faxing in your request, do the same as by mail; leave a phone number and your availability on the cover sheet.
You can also call the office directly for your request. Just make sure you have your credit card by you, as they’ll need the number to charge you accordingly.
Lastly, you can go in person to get your certificate of good standing. You can enjoy both regular and expedited processing (which will cost extra).
Do note that if you get your certificate online, you’ll receive it immediately. However, other methods can take 10 business days. With expedited processing, this is reduced to 24 business hours.
How Long Is a Certificate of Good Standing Valid For?
Technically speaking, your certificate of good standing is valid for as long as your business is operating. However, realistically, that probably won’t be the case.
The purpose of the document is to prove that you’re in compliance, and if it’s not recent, then it won’t mean much. For this reason, expect your certificate to only be valid for one to three months. It’s best that you ask the third-party requester about what’s acceptable, as they’ll have specific parameters based on the situation you’re in.
Get Your Certificate of Good Standing in Illinois
You might not have been asked for a certificate of good standing in Illinois yet, which is quite normal. However, it’s more a question of “when” not “if” you’ll have to get one.
This means that if you have prior knowledge of the process, it won’t be as hectic when the time comes. And as a result, you won’t miss out on golden opportunities.
Sign up with Business Anywhere if you’d like to start a new business. Our comprehensive services mean that the process will be smooth and easy.
