You might be asking if you require a certificate of good standing if you operate as a sole owner. The short answer is no, as a sole proprietor you are not required to have a certificate of good standing. But it’s crucial to comprehend what a certificate of good standing is and why various kinds of firms could require one.
A certificate of good standing, often called a certificate of existence or a certificate of authorization, attests to a company’s compliance with state laws and the payment of all due fees and taxes. When a company wishes to register in another state, seek for a loan, or renew a business license, this certificate is frequently necessary.
To avoid fines and other legal repercussions, businesses and LLCs must keep their status in tact. A company or LLC that is not in good standing has not complied with state requirements, such as filing annual reports or paying taxes. A corporation or LLC in Illinois that is not in good standing could face fines or potentially be dissolved by the state.
You can use the website of the Illinois Secretary of State to check the status of your corporation or LLC. To check if your company is in good standing, just enter your business name or filing number. If your company isn’t in good standing, you’ll need to take action to make things right, like submitting any required reports or paying any unpaid fines.
You are not required to get a certificate of good standing or maintain good standing as a sole proprietor. Nevertheless, it’s crucial to maintain accurate business records and to pay all applicable taxes. Even though sole proprietors might not be required to obtain a certificate of good standing, it might still be advantageous to get one if you have any plans to grow your company or seek for a loan.
In conclusion, corporations and LLCs must maintain good standing in order to avoid fines and other legal repercussions, even though sole owners are exempt from this requirement. You can use the website of the Illinois Secretary of State to look up the current status of your company there. It’s crucial to maintain accurate business records as a sole proprietor and to pay all applicable taxes.