You may be asked to provide a certificate of good standing for your Michigan limited liability company (LLC). Banks and creditors often ask for this document before issuing business credit to ensure you comply.
A Michigan certificate of good standing is relatively easy to obtain, but it does take some know-how.
What Is a Michigan Certificate of Good Standing?
A certificate of good standing in Michigan verifies that your LLC complies with state regulations. The state will issue the certificate once you’ve met all deadlines and filed all relevant reports.
You’re not required to get a certificate of good standing in Michigan, 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?
A bank or creditor might request a certificate of good standing as part of their due diligence when they apply for a business loan or business credit. This simply confirms your business has no outstanding regulatory issues.
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 Michigan
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 Michigan business licenses, permits, and reporting requirements for your LLC or corporation in Michigan.
Which Department Issues Certificates of Good Standing in Michigan?
In Michigan, certificates are issued online through the Department of Licensing and Regulatory Affairs website.
Enter your business ID number and select the type of certificate you’re ordering and the method of return you request.
The fee is $12.50 in person and $10 online, by mail, or by phone. Assuming your LLC is in full compliance, you should receive your certificate within five days.
Alternatively, you can download the request form and mail it, along with the fee, to:
LARA, Corporations Division
P.O. Box 30054
Lansing, MI 48909