Submitted by UCS on September 17, 2017

Five Reason You Should Make Sure Your Business Is in Good Standing

Is your business in good standing? Being in good standing demonstrates that your company has met all statutory obligations and is authorized to conduct business in the state. Every day, UCS receives multiple requests for certificates of good standing, and quite often, to our client’s dismay, we have to inform them that their request is denied because the company is not in good standing. This can cause delays in your business transactions and cost you money. Maintaining your company’s Good Standing status will:

1. Prevent unwanted penalties and fees.
   No business owner wants an unnecessary financial hit. If your business has failed to stay in good standing, many states will impose a fee. Avoid the risk of penalty by making sure you have all your filings and documents in order.
2. Give you the ability to grow and expand your business.
   If you are about to expand your business to another state, you often need to show that your company is in good standing in the state in which it was formed. Most states require proof of good status before it will register an out-of-state entity and allow it to transact business in their state.
3. Ensure continued liability protections.
   Allowing your good standing to lapse can lead to the loss of liability protections. To prevent risk exposure, keep up-to-date records and maintain your company’s good status at all times.
4. Provide assurance to lenders.
   Lenders want to see that your business has complied with state regulations. To avoid financing problems or delays, be ready to present a certificate of good standing to potential backers.
5. Save you time.
   Once you have lost good standing status, it can take hours or even days to revive it.

What can affect your “good standing status”?

If you fail to maintain a qualified registered agent or do not file annual reports in a timely fashion, you can jeopardize your company’s good standing status. Make sure you submit the reports your state requires. A professional corporate service provider like UCS can manage the paperwork so you can focus on building your business.

Depend on UCS to keep your business in good standing.

At UCS, we help our clients with all the necessary steps to ensure their business is always good standing. Contact us to learn more about how we can help your business thrive.