A certificate of good standing is a document that confirms that a business has fulfilled, and is compliant with all legal requirements that will allow it retain sole rights to its business name, and also has the authority to conduct business under its business name.
Most states want to see a certificate of good standing (or its equivalent) before allowing a company to do business in that state as a “foreign entity”. This process is called foreign qualification. Companies that intend to expand abroad might also need to obtain certificate of good standing, and then certify it for foreign use either with Apostille or Embassy Certification.
It should be noted that a certificate of good standing or status does not imply that a business is in good standing with the IRS, the Departments of Labor or Taxes, or the Attorney General’s Consumer Protection Unit; or that it is free and clear of any liens or pending lawsuits.
The certificate of good standing just confirms that business has sole right to its name and that it has been duly registered.
When setting up a business, you should be aware that obtaining a Certificate of Good Standing puts you in a better position than a business that does not have it. Your business will look better to your customers and they will know that they are doing the right thing by patronizing you.
People appreciate businesses that go out of their way to stay within the ambit of the law. This humble certificate makes you look better in the eyes of people thus making your business and concept more acceptable right now and in the future.
Also known as certificate of existence or authorization, certificate of good standing may only be obtained for entities that file annual/biennial reports. For trade names and general or limited partnerships, you may have to request a Certificates of Status.
Requesting a Certificate of Good Standing in Vermont and its Requirements
A certificate of good standing in the State of Vermont can be ordered by mail or in person, but it is recommended that you request your certificate by mail. Normal processing takes up to 5 days, plus additional time for mailing, and this costs $25. Expedited service is not available when it comes to requesting your certificate of good standing.
When ordering your certificate of good standing, you will have to provide the Order Form which will include; the business name, payment, return address information, specific request and a daytime phone number for any questions.
When ordering your certificate of good standing in person, you should know that you will have to wait for 3-5 business days before your order is ready. You need want to have your payment handy when placing your order.
A Certificate of Good Standing is available upon request. The certificate shows that the businesses, corporations, and organizations bearing the certificate are in good standing with the Vermont Department of Taxes, which means that all tax liabilities are paid or in an approved payment plan, and all required returns have been filed to date.
These requests are typically made when a business is being sold, to obtain financing, or enter into other business transactions. To request a Certification of Tax Standing, you need to provide the following information:
- Official name of the business, corporation, or organization
- Federal Employer Identification Number (FEIN)
- Mailing instructions of where the letter is to be mailed, emailed, or faxed
- You can submit your request by e-mail, fax or by mail. Your request will be processed within 7-14 business days.
If you are using Fax , you should send your request to (802) 828-5282.
For filing though mail, you should mail your request to:
Vermont Department of Taxes
133 State Street
Montpelier, VT 05602
How to Generate a Certificate of Good Standing in Vermont
- You must begin by logging into your online account on their webpage. You need to create an account on the Online Business Service Center for you to start.
- Once you’ve accessed your homepage, click on the VT SEC OF STATE ONLINE SERVICES on the far left hand side of the screen. There you will be able to click on either the Certificate of Good Standing option or the Certificate of Status link.
- This page will just inform you that you will need to have a PDF viewer in order to view the purchased certificate.
- Start the process by performing a business search. Choose whether you want to conduct the search by name or by business ID then submit the name/number into the field and click Search Business.
- A list should appear of all the names that match the contents of your query. If you searched by business ID, you will see just the one result. Make your selection by checking the bubble in the far right hand column and click Continue.
- Supply the number of copies you’d wish to purchase and click Continue.
- Your payment information should be provided at this point. This will mean either your credit card info and billing address, or your account information (if you’re paying by eCheck). Remember that you are paying $25. Once the purchase has gone through, you will have successfully acquired a certificate of good standing and will be able to download it as a PDF.
Certificates of Good Standing are valid for 90 days from the date of issuance.
To verify a Certificate of Good Standing:
- Go to the Online Business Service Center
- Enter the “Certificate Number” number (bottom corner of certificate)
- Confirm your certificate matches the image displayed