Are you thinking about becoming a small business owner? It’s a great path for those who have innovative ideas and want to work for themselves.
While it can certainly be a freeing career choice, there are additional things to worry about, such as official documents. One commonly requested one is the certificate of good standing, which exists in all states (in some form), including Florida.
In this article, we’ll tell you what a certificate of good standing in Florida is, why you might need one, and how to get it.
What Is a Certificate of Good Standing?
A certificate of good standing is something issued by the state that gives official verification. It proves that your company is legally registered with the state and that it’s authorized to operate there too. This typically means that the business is compliant with state regulations and has met all necessary filing and fee requirements.
In some states (such as Florida), this document is also known as a certificate of status. So if you were wondering, “What is a certificate of status in Florida,” it’s the same thing as a certificate of good standing.
When you first start your company, you probably won’t need these papers. However, if you plan on taking it to the next level at any point, there’s a good chance someone will ask for a certificate of good standing. Below are some examples of when you’d need one.
Business Transactions
Signing a contract is a big deal, and everyone wants to feel secure and confident before making a commitment. This is why other businesses and government entities will require that you show a certificate of good standing before entering into contracts or agreements.
Financial Transactions
Your finances are things you can’t ignore, especially if you plan on expanding your business in the future and need help. Banks and financial institutions may ask for this document when you open a business bank account, apply for a loan, or secure other financial services.
Licenses and Permits
Most likely, you’ll not only have to apply for licenses and permits, but also renew them every so often. Do note that some local or state licenses or permits may require the presentation of a certificate of good standing.
Investor Assurance
Before someone puts in a large sum of money into your company, they’ll probably want to see that you’re on the right track. A smart way to do this is by seeing a certificate of good standing, which proves that your business is in compliance with state laws and is a legitimate entity.
Foreign Qualification
If you want to do business in another state, then you’d have a foreign corporation. And to do things by the book, you’ll need to go through foreign qualification. To do that, you’ll need a certificate of good standing from Florida to submit as part of the process.
How to Get a Certificate of Good Standing in Florida
Before you even think about requesting this document, you should make sure that your business is actually in good standing. If you’ve been diligent and have kept up with all your paperwork, then there shouldn’t be anything to worry about.
Those who haven’t started a company yet can use our business registration service. We can set up limited liability companies (LLCs) or corporations in all 50 states, so you’re in good hands.
After you’re set up, or after you’ve ensured you’re in good standing, then you can take the following steps to get your certificate of status from Florida.
Order Online From the Florida Department of State
You can order your certificate from the Division of Corporations page. But before that, you should first find your document number. You can do this by searching their corporation records by name.
Press the “order a certificate of status” button, then put in that number on the next page. Fill in your email address, and then pay for the order. You should then receive the certificate in your email as a PDF file.
If you’re wondering about the costs, they are as follows:
- Corporation: $8.75
- LLC: $5.00
- General partnership: $8.75
- Limited partnership: $8.75
- Fictitious name registration: $10.00
Order by Mail From the Florida Department of State
You can also order your certificate of status by writing to the Department of State at:
Division of Corporations
Certifications Section
P.O. Box 6327
Tallahassee, FL 32314
You should include the following information in your letter:
- The business name
- The business registration number
- The document type (certificate of status)
- The date the document was filed
You should include your payment too, which should be a check or money order; checks should be written out to the Florida Department of State. Do note that you can only use US currency that comes from a US bank account.
How Long Is My Florida Certificate of Good Standing Good For?
There’s no explicit expiration date on your certificate. However, that doesn’t necessarily mean that you can buy one document and use it forever.
In most cases, the party requesting the certificate won’t want it to be over 1-3 months old. After all, they want to check that your business is compliant with state laws, and if the paper is on the older side, it may not tell them much anymore.
The best thing you can do is to ask them what the acceptable dates are. That way, you can meet expectations and ensure that everything goes smoothly.
Get Your Certificate of Good Standing in Florida
It may be true that you don’t need a certificate of good standing in Florida right now. However, it doesn’t hurt to be familiar with the process, especially if you want your business to grow later on.
Because you’ve researched this topic beforehand, you’ll be fully prepared when someone asks you to produce this document. You can even give other fellow business owners advice about it should they need it.
Sign up with Business Anywhere if you want to form a company for FREE, in Florida or any other state. We have years of experience helping entrepreneurs get established quickly.
