At some point, you may be asked to provide a certificate of good standing for your Rhode Island limited liability company (LLC). Banks and creditors often ask for this document before issuing business credit to ensure you comply.
A good Rhode Island certificate of good standing is relatively easy to obtain, but it takes some know-how. Lucky for you, this handy guide walks you through the process.
What Is a Rhode Island Certificate of Good Standing?
In Rhode Island, 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 in Rhode Island, you’re not required to get a certificate of good standing, 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 Rhode Island
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 Rhode Island. That means you’ll need to be up to date on all Rhode Island business licenses, permits, and reporting requirements.
Which Department Issues Certificates of Good Standing in Rhode Island?
In Rhode Island, the Secretary of State issues certificates of good standing. You can obtain one online.
How to Get a Certificate of Good Standing in Rhode Island
Visit the Secretary of State’s website and search for your business.
Then simply click “request certificate.”
The fee is $22, and assuming your LLC is in full compliance, you should be able to access your certificate online within two business days.
Alternatively, you can submit a written request by mailing it, with the fee, to:
Business Services Division
148 W. River St.
Providence, RI 02904-2615
Getting a certificate of good 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.