Why do I need a Certificate of Good Standing in Wyoming?
A certificate of good standing also known as the certificate of existence is one of the most important documents that business entities require in the state and you have to provide this document along with your articles or certificate of authority. The question is – Why would a business entity require a certificate of good standing at all?
There are several reasons why a Wyoming certificate of good standing is required and some of them are:
The greatest barrier that a business entity may face in the state of Wyoming is losing their active status. A business can lose its active status if it has:
- Failed to hire a registered agent or maintain a registered office in the state pursuant to WY Stat § 17-29-705, (2015) for LLC and WY Stat § 17-16-501 (1997 through Reg Sess) for profit corporations
- Failed to pay the annual fee accompanying the annual report as required by W.S. 17-29-210 or submit annual report license tax pursuant to W.S. 17-16-1630
- Failed to pay penalties imposed under W.S. 17-28-109
Losing the active status means that the LLC or profit corporation has forfeited any rights or privileges it has in the state of Wyoming. In such a scenario the business entity will have to reinstate and apply for a fresh certificate after fulfilling the requirement of a registered agent and by submitting their annual report, fee, and penalties. This reinstatement process is the only way the company can have an active Wyoming business status. Losing your active business status can cause damage to the reputation of the business entity severely.
An active Wyoming business status indicates that the business entity in question has a good standing in the state and this is extremely useful for applying for loans and financial incentives as well as conducting business transactions in the state. This certificate will play a crucial role in ensuring there are no hindrances in the business operations.
A foreign business entity requires a Wyoming certificate of good standing by law. According to WY Stat § 17-16-128 (1997 through Reg Sess) for foreign corporation and WY Stat § 17-29-208. (2015) for foreign LLC, if a business entity doesn’t have the certificate of good standing then they will not be authorized to transact their business within this State.