At some point, you may be asked to provide a certificate of standing for your Iowa limited liability company (LLC). In addition, many creditors ask for a certificate of standing before issuing business credit.
An Iowa standing certificate is relatively easy to obtain, but it takes some know-how. Lucky for you, this handy guide tells you how to do it.
What Is an Iowa Certificate of Standing?
A certificate of standing, known as a certificate of good standing in most states, is issued by Iowa and 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 standing in Iowa, 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 Standing?
Again, a bank or creditor might request a certificate of 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 standing from your home state.
Requirements to Obtain a Certificate of Standing in Iowa
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 standing.
You’ll also need to comply with all legal requirements for your LLC or corporation in Iowa. That means you’ll need to be up to date on all Iowa business licenses, permits, and reporting requirements.
Which Department Issues Certificates of Standing in Iowa?
In Iowa, the Secretary of State issues certificates of standing. You can obtain one online.
How to Get a Certificate of Standing in Iowa
Visit the Secretary of State’s website and search for your business by name or business number.
Select your business and then click “print certificate of existence.”
The fee is $5, and assuming your LLC is in compliance, you should be able to access your certificate online immediately.
However, you cannot request your certificate by mail. You can only obtain it online.
Getting a certificate of 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.