As the years go by, customer trust in brands keeps declining; in 2023, only half of consumers have faith in companies. This can make it hard to do business, but to gain trust, you have to earn it first.
One great way to prove that your brand is legit is to get a certificate of good standing, which the state of New York offers. This document can instill trust in a number of third parties in addition to clients, so it’s worth learning about.
Read on to see what a certificate of good standing in New York is and how to get one.
What’s a Certificate of Good Standing?
A certificate of good standing is an official document issued by the New York Department of State. It’s also known as a certificate of status or certificate of existence. It shows that you’re authorized to do business in NY and that you’re compliant with all state requirements.
The types of business entities that can obtain one are:
- Corporations
- Limited liability companies (LLCs)
- Limited partnerships (LPs)
- Limited liability partnerships (LLPs)
- General partnerships (GPs)
- Non-profit organizations
- Professional corporations (PCs)
Typically speaking, you wouldn’t be required to have a certificate of good standing to run your business. However, there are some common scenarios where you would be asked to get one.
Securing Financing
Lenders won’t want to give large sums of money to someone who’s irresponsible and won’t pay them back on time (or at all). If you apply for a loan or line of credit, or even open a business bank account, expect the lender (or institution) to ask for this certificate to check that you’re legally compliant and in good standing.
Investor or Partner Requirements
The same goes for third parties who will either give you funding or be directly involved in your business operations. Whether you’re dealing with investors, partners, mergers and acquisitions, or are selling your business, these third parties will want to make sure that they’re making a sound choice. A state of New York certificate of good standing can prove that you’re someone trustworthy.
Applying for or Renewing Permits and Licenses
Having permits and licenses is a privilege, not a right. Governments have the right to deny you these things if you can’t keep up with compliance. So even if you’ve gotten a permit or license before, it’s common to be asked for a NY certificate of good standing to see that you’re being a responsible business owner.
Doing Business in Another State
Doing business in another state is called foreign qualification, and you may choose this path if you want to expand. In this case, you might have to register your company as a foreign entity in the new state. One of the requirements is that you provide a certificate of good standing from your home state.
How to Get a Certificate of Good Standing in New York
Before we tell you how to request a certificate of good standing in New York, you’ll want to first do your due diligence. More specifically, you’ll want to check that your company is actually in compliance with all state requirements, including filing annual reports and paying any due taxes or fees. If your business isn’t active and in good standing with the state, then the rest of the steps will be a waste of your time.
If you were just curious about a certificate of good standing and don’t have an active company yet, then consider our business registration service. We have years of experience setting up LLCs and corporations, and can handle all the paperwork for you.
With that being said, these are the steps to follow to get a certificate of good standing in New York.
Request It From the Department of State
In many states, you can request the certificate digitally. Unfortunately though, you can’t get a certificate of good standing in New York online. Instead, you’ll have to write in
For your written request, you’ll include:
- A statement requesting the certificate
- The name of your business
- If known, the Department of State ID number or the exact date of formation
- A statement requesting either regular or expedited processing
- The mailing address where you want the certificate
Here’s the address you should put on the envelope:
New York State Department of State, Division of Corporations
One Commerce Plaza
99 Washington Avenue
Albany, NY 12231
Do note that in addition to mailing in your request, you can either hand it in in person or fax it.
No matter which method you choose, you’ll have to pay a $25 fee. If you want expedited processing, it’ll cost $25 for 24-hour service, $75 for same-day service, or $150 for 2-hour service.
How Long Is a New York Certificate of Good Standing Good For?
Officially, there’s no expiration date for a New York certificate of good standing. However, the main reason that these certificates are requested is that third parties want to see that you’re compliant. This means that your document should be fairly recent.
In general, expect the “validity” to be 60 to 90 days from the date of issuance. You should always make sure to ask the requestor what dates are acceptable.
Get Your Certificate of Good Standing in New York
Now you’re prepared and know how to contact the New York Department of State when you need a certificate of good standing in New York.
Having one can be advantageous, especially if you plan on making big moves with your business in the near future. As you can see by our instructions, it’s not difficult to get this document, as long as you’ve kept up with all your business responsibilities.
Sign up with Business Anywhere now if you’d like to start a company. It’ll only take a few working days for us to get you set up in our intuitive portal.
