You may be asked to provide a standing certificate for your New Jersey limited liability company (LLC) at some point. Banks and creditors often ask for this document before issuing business credit to ensure you comply.
A New Jersey standing certificate is relatively easy to obtain, but it does take some know-how. Lucky for you, this handy guide walks you through the process.
What Is a New Jersey Standing Certificate?
In New Jersey, a standing certificate, known as a certificate of good standing in most states, verifies that your LLC fully complies with state regulations. The state will issue the certificate if you’ve met all deadlines and filed all relevant reports.
Keep in mind that you’re not required to get a standing certificate in New Jersey, but banks and creditors might request one, so it’s wise to have it on hand.
In What Situations Would I Need a Standing Certificate?
Again, a bank or creditor might request a standing certificate when you apply for a business loan or business credit. This is simply part of their due diligence and risk assessment, confirming that 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 standing certificate from your home state.
Requirements to Obtain a Standing Certificate in New Jersey
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 standing certificate.
You’ll also need to comply with all legal requirements for your LLC or corporation in New Jersey. That means you’ll need to be up to date on all New Jersey business licenses, permits, and reporting requirements.
Which Department Issues Standing Certificates in New Jersey?
In New Jersey, the Department of the Treasury issues standing certificates. You can obtain one online.
How to Get a Standing Certificate in New Jersey
Visit the Department of the Treasury website and search for your business.
Then select whether you want the short-form or long-form certificate with filings.
The fee is $50 for the short form and $100 for the long, and assuming your LLC is in full compliance, you should be able to access your certificate online immediately.
Alternatively, you can submit a request in writing by mailing it, along with the fee, to:
NJ Division of Revenue and Enterprise Services,
Certification and Status Unit
PO Box 450
Trenton, NJ 08646
Getting a standing certificate 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.