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CALIFORNIA CERTIFICATE OF GOOD STANDING OR STATUS
California is home to a $2.9 trillion economy and has been ranked #1 in economic climate and #8 in business growth prospects by Forbes. If you are planning to establish a start-up in California or achieve high growth of your business then one of the most important documents to obtain is California certificate of good standing.
What is California Certificate of Good Standing?
The certificate of good standing is also known as a Certificate of Status or Certificate of Existence in different jurisdictions. In the state of California, it is considered to be a proof of existence. It highlights California business status being active and having this certificate can help the business entity to enjoy the rights and privileges provided by the law like LLC’s can enjoy the privileges of limited liability. It is important to know that a business needs to be in compliance with all applicable corporate or LLC laws as well as licensing requirements.
It is also important to note that according to CA Corp Code § 2101 (2016) for foreign corporations and Title 2.6. California Revised Uniform Limited Liability Company Act, § 17708.02 for foreign LLC’s, a California certificate of good standing or a certificate of existence is a mandatory requirement in order to register business and transact in the state.
How to get a Certificate of Good Standing in California?
If you are setting up a new business in the state then a California certificate of good standing will be helpful in ensuring that you can operate your business in the state without any problems. So how can you obtain the certificate of existence? Is there a process? We have created a step by step approach keeping in mind, the requirements of different businesses.
1. Type of Business
What type of business are you planning to set up in the state of California? Will it be an LLC or a Professional Corporation? Identifying the type of business is important as some businesses don’t require a good standing certificate.
2. Type of Status
It is important for businesses to maintain an active California business status so that they can enjoy the privileges of specific businesses in the state. A domestic or foreign business corporation can be suspended or forfeited pursuant to CA Corp Code § 2206 (2016) and CA Corp Code § 2205 (2016) and LLC’s can be suspended pursuant to Title 2.6 California Revised Uniform Limited Liability Company Act, section 17713.10. Once, a business is suspended they will have to clear their dues, penalties, franchise tax etc., and submit it along with a certificate of good standing for reinstatement.
3. Information
You have to provide information specified by the Secretary of the State or California Statutes in your order request for a California certificate of good standing. The following information needs to be provided by a business entity applying for the certificate of status:
- Name of the business entity as filed in the Articles of Incorporation and Articles of organization
- Date of formation or registration of the business entity
- Physical address of the business entity
- The name of the Registered agent and their address
- Confirmation of payment of all types of fees, franchise tax as well as penalties if any that was due to the secretary of state
4. Order Request
In order to ensure good California business status, you can file the certificate of existence or good standing with the office of the Secretary of State – Business Programs Division. It can be done in the following ways:
- By Mail: You can request for certificate through mail. You will be required to mail the “Business Entities Records – Order Form” to Secretary of State – Business Programs Division, Business Entities – Records, P.O. Box 944260, Sacramento, CA 94244-2600.
- In person: You can also submit the request for California certificate of good standing in person with the Secretary of State – Business Programs Division, 1500 11th Street, Sacramento, CA 95814 from Monday through Friday between 8:00 a.m. and 5:00 p.m., excluding state holidays.
- Online: One of the fastest ways to receive a good California business status certificate is by applying Online. We at IncParadise, offer an online request or order option for businesses in the state so that it can be processed as early as possible.
Order California Certificate of Good Standing Today!
Why do I need a Certificate of Good Standing in California?
Maintaining an active California business status is the key to growth through opportunities for every business in the state. You can achieve this status by submitting documents required by the secretary of the state annually including franchise tax. The certificate is issued by the Secretary of State – Business Programs Division and it authorizes new or existing or domestic and foreign business entities to avail of various financial incentives and take advantage of other business opportunities. The reasons you may require this certificate in California include:
A certificate of good standing highlights the fact that the California business status is active. This implies that foreign or domestic limited liability company or corporation has:
- Submitted the franchise tax of pursuant to CA Rev & Tax Code § 19021 – 19027 (2016)
- Has appointed and is maintaining a registered agent in the state pursuant to Corporations Code – CORP § 17701.13 for a business corporation and 2016 California Code – CA Corp Code § 1702 (2016) for a limited liability company
- Have submitted the Statement of Information report with the Secretary of the State pursuant to CA Corp Code § 2206 (2016) for business corporations and Title 2.6 California Revised Uniform Limited Liability Company Act, section 17713.10 for LLC.
The active status implies that a business entity in the state of California will be able to apply for bank loans or federal financial incentives. They will be able to create meaningful and beneficial business partnerships by signing up with vendors, which will eventually create a positive reputation for the company.
A foreign business entity requires a California certificate of good standing by law. According to CA Corp Code § 2101 (2016) for foreign corporations and CA Corp Code § 17708.02 (2016) for a foreign LLC, if a business entity fails to obtain the certificate of existence or good standing then they will not be authorized to transact their business within this State.
A business entity will also require the Certificate of Good Standing if they are planning a merger or acquisition, as it will be seen as a legal documentation of the entity.
How long does it take to get a certificate of good standing in California?
The Secretary of State – Business Programs Division is responsible towards issuing of the California certificate of good standing, which is also known as the Certificate of Status or the California Tax Status Letter. The normal processing time can be as long as 4 weeks.
We at IncParadise can help in expediting the process by enabling you to apply through our easy to access- ONLINE system. You will be able to enjoy the following benefits:
- You will have a personalized and secure business account
- You can view the Business Entities Records – Order Form, fill it, edit information, save or submit along with the required fee
- You can save time, which will enable you to make your business operational quickly
- You will be able to view the certificate and download it right from your personal account at IncParadise.