Knowing whether a business is in good standing helps you verify its legal status, credibility, and compliance. Banks, partners, investors, and state agencies often review this information before approving contracts, loans, or registrations. Checking a company’s standing is simple once you know where to look and what to review.
What It Means for a Business to Be in Good Standing
A business is in good standing when it has met all state requirements, including filing annual reports, paying fees, and maintaining an active registered agent. The Secretary of State records this information and updates a company’s status in the public database.
If a company fails to meet these requirements, the state may mark it as:
- Delinquent
- Inactive
- Not in good standing
- Administratively dissolved
A business in good standing maintains legal authority to operate and keeps its limited liability protection intact.
How to Check a Business’s Standing
You can verify a company’s standing through the state where it is registered. Each state maintains an online search tool that lists the official status of every corporation, LLC, or partnership in that jurisdiction.
Step 1: Visit the Secretary of State’s Business Search Portal
Start by locating the business entity search on the Secretary of State website for the relevant state. Every state has its own portal. You can search using:
- The business name
- The entity number or state ID
- The registered agent’s name (in some states)
This search displays the official record for the business.
Step 2: Review the Entity Status
Once you open the business record, look for the section labeled Status or Entity Status. The database will typically list one of the following:
- Active
- In Good Standing
- Delinquent
- Inactive
- Dissolved
- Revoked
If the business is listed as Active or In Good Standing, it has met state requirements. Any other status indicates compliance issues.
Step 3: Check Filing History
Most state portals also display recent filings. Review the business’s:
- Annual reports
- Statement of information filings
- Registered agent updates
- Reinstatement documents
Missing filings often explain why a business is not in good standing.
Step 4: Check for Outstanding Fees or Notices
Some state business search systems list unpaid fees or rejected filings. These issues can affect standing. If the business owes franchise taxes or failed to pay state fees, its status may be marked as delinquent.
Step 5: Request a Certificate of Good Standing (Optional)
For official proof, you can request a Certificate of Good Standing through the state’s filing office. This document verifies that the business:
- Exists legally
- Remains active
- Has no outstanding compliance obligations
Many banks, state agencies, and investors require this certificate as part of their due diligence.
Why Checking Good Standing Matters
Verifying a company’s standing helps you confirm:
- The business is legally authorized to operate
- It maintains compliance with state requirements
- It can enter binding agreements
- It has not been dissolved or revoked
This information protects you from entering contracts with entities that lack legal authority.
Businesses also benefit from checking their own standing. Early review helps prevent missed deadlines or administrative issues that could lead to penalties or dissolution.
How Often You Should Check Your Own Standing
Many business owners check their status:
- Before filing annual or biennial reports
- Before major transactions
- Before applying for financing
- Before registering to operate in another state
A quick review can prevent delays and ensure your company stays compliant throughout the year.
Final Thoughts
Checking whether a business is in good standing is simple and essential. State databases offer accurate information about legal status, filings, and compliance. If you need formal proof, requesting a Certificate of Good Standing provides official verification recognized by banks, agencies, and partners.
Staying informed protects your business and supports long-term stability.
