You may be asked to provide a certificate of good standing for your Illinois limited liability company (LLC). Many creditors ask for a certificate of good standing before issuing business credit.
An Illinois certificate of good standing is relatively easy to obtain, but it does take some know-how.
What Is an Illinois Certificate of Good Standing?
A certificate of good standing issued by the state verifies that your LLC complies with all Illinois 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 Illinois, but banks and creditors might request one, so it’s wise to have one.
In What Situations Would I Need a Certificate of Good Standing?
A bank or creditor might request a certificate of good standing as part of their due diligence and risk assessment when they apply for a business loan or credit.
They need to verify that you’re registered to do business in the state and are fully compliant. 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 Illinois
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 be up to date on all Illinois business licensing, permits, and reporting requirements for your LLC or corporation in Illinois.
Which Department Issues Certificates of Good Standing in Illinois?
In Illinois, the Secretary of State issues certificates of good standing. You can obtain one online at the Secretary of State’s website.
Search for your business name, then select “Certificate of good standing.”
The fee is $25, and, assuming your LLC is in compliance, you should be able to access your certificate online immediately.
You cannot request your LLC certificate of good standing by mail. You can only obtain it online.