You may be familiar with the term “good standing” if you own a business. Being in good standing basically implies that your company is current with all legal requirements, such as state filings, payment of taxes and fees, and compliance with any rules or regulations relevant to your industry. If your company isn’t in good standing, it could have major repercussions, like losing liability protection, having trouble getting loans or business licenses, or even going out of business.
Why, therefore, could your company not be in good standing? This may be the case for a number of reasons. Maybe you failed to pay a mandatory fee or you missed a deadline for completing an annual report with the state. Perhaps you neglected to maintain correct records of your business dealings or you disregarded regional zoning regulations. Whatever the cause, it’s critical to take action as soon as you can to prevent any future unfavorable effects.
Another phrase for “in good standing” is “currently authorized to transact business” in the state in question. This indicates that the company has complied with all legal requirements to conduct business there and is not currently subject to fines or legal repercussions.
You might require a certificate of status if you run a limited liability company (LLC) in Illinois to demonstrate that your firm is in good standing. This document attests that your LLC has all necessary filings and fees current and is legitimate to conduct business in Illinois. Although a certificate of status is not necessary in every state, it can be a helpful document to show that your company complies with local rules and laws.
You can utilize the online business search tool on the Illinois Secretary of State’s website to look up the status of your LLC there. This will provide you the opportunity to determine whether your company is currently in compliance with the law and, if not, what steps you may need to take to do so. Even if you think everything is current, it’s a good idea to frequently verify the state of your company to prevent any surprises in the future.
To sum up, any company that wants to operate legally and shield itself from liability must be in good standing. You should figure out why your company isn’t in good standing right now and take action to fix the problem as soon as you can. This could entail submitting documentation, paying taxes or fees, or fixing any compliance problems. Once you’ve restored your company’s good status, make sure to keep up with any upcoming standards to prevent running into the same issue again.
You can verify with the Secretary of State’s office in the state where the business is registered to see if it is closed. They often keep track of registered businesses and their status in a database. To find out more about the company’s status, you can also try looking for them online or getting in touch with them personally. In order to find out if there have been any reports or complaints about the business closing, you can also check with your neighborhood business directories or the Better Business Bureau.