You may be asked to provide a certificate of good standing for your Ohio limited liability company (LLC). Banks and creditors often ask for this document before issuing business credit to ensure you comply.
An Ohio certificate of good standing 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 an Ohio Certificate of Good Standing?
In Ohio, a certificate of good standing verifies that your LLC is in full compliance 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 certificate of good standing in Ohio, 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. 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 certificate of good standing from your home state.
Requirements to Obtain a Certificate of Good Standing in Ohio
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 Ohio. That means you’ll need to be up to date on all Ohio business licenses, permits, and reporting requirements.
Which Department Issues Certificates of Good Standing in Ohio?
In Ohio, the Secretary of State issues certificates of good standing. You can obtain one online.
How to Get a Certificate of Good Standing in Ohio
Visit the Secretary of State’s website, read the terms and conditions, and click submit.
Then you’ll search for your business.
Your LLC’s information will appear, asking you to confirm that it’s the correct entity.
Next, you’ll be taken to the payment screen.
The fee is $5, and assuming your LLC is in full compliance, you should be able to access your certificate online immediately.
Alternatively, you can download the request form and mail it to the following:
Client Service Center
22 North Fourth Street
Columbus, Ohio 43215
Getting a certificate of good standing may seem like a hassle, but you won’t think that when you need financing. Be sure to get it done when you have a chance – you, and your LLC, will be happy you did.