You may be asked to provide a certificate of good standing for your Colorado limited liability company (LLC). Many creditors ask for a certificate of good standing before issuing business credit.
A Colorado certificate of good standing is relatively easy to obtain, but it does take some know-how. Lucky for you, this handy guide tells you how to do it.
What Is a Colorado Certificate of Good Standing?
A certificate of good standing issued by the state of Colorado verifies that your LLC complies with all state regulations. The state will issue the certificate if you’ve met all deadlines, such as annual report filings.
Keep in mind that you’re not required to get a certificate of good standing in Colorado, but banks and creditors might request one, so it’s wise to have it on hand.
In What Situations Would I Need a Certificate of Good Standing?
Again, a bank or creditor might request a certificate of good standing when you apply for a business loan or business credit. But, again, it’s nothing to worry about; just part of their due diligence and risk assessment to verify that you’re registered to do business in the state and fully compliant.
In addition, if you expand your business to other states, you’ll have to register as a foreign LLC. In such cases, the new state may request a certificate of good standing from your home state.
Requirements to Obtain a Certificate of Good Standing in Colorado
You must have a registered business entity in the state, either an LLC or a corporation. Sole proprietorships and partnerships do not register with the state, so they cannot obtain a certificate of good standing.
You’ll also need to comply with all legal requirements for your LLC or corporation in Colorado. That means you’ll need to be up-to-date on all Colorado business licenses, permits, and reporting requirements.
Which Department Issues Certificates of Good Standing in Colorado?
In Colorado, the Secretary of State issues certificates of good standing. Unfortunately, you cannot request the form by mail. You can only obtain it online.
How to Get a Certificate of Good Standing in Colorado
Visit the Secretary of State’s website and search for your business entity.
Click on your business name and “get a certificate of good standing.”
The fee is free, and assuming your LLC is in full compliance, you should be able to access your certificate immediately.
Getting a certificate of good standing may seem like a hassle, but you won’t think that when you need financing. So be sure to get it done when you have a chance – you, and your LLC, will be happy you did.