In Hawaii, potential creditors or investors might request a certificate of good standing for your LLC, and you’ll need to be able to provide one or risk the loss of crucial financing. Thankfully, this guide provides all the information you need to get this certificate in Hawaii.
What is a Certificate of Good Standing for Hawaii?
In Hawaii, a certificate of good standing verifies that you’re a legally registered business entity that is up to date on all filings and fees and permitted to do business in the state. You do not have to obtain this certificate to do business in Hawaii, or in any state. It is simply used to verify your strong status to third parties such as banks.
Why Do I Need a Certificate of Good Standing?
Your LLC only needs a certificate of good standing if another party requests one. For instance, a bank might request one if you’re opening a bank account or applying for a loan. The credit firm might request one if you apply for a business credit card, or if you set up credit card processing for customer payments.
If you’re registering as a foreign LLC in another state, you will probably be asked for a certificate of good standing.
A foreign entity is simply a business entity doing business in a state other than the one in which it’s registered. For example, if your business is registered in Hawaii but you also do business in Georgia, you’ll need to register a foreign entity in Georgia.
Where to Get a Certificate of Good Standing in Hawaii?
In Hawaii, the state department issues certificates of good standing. Just go to the state’s business portal to fill out the required form. The cost is $7.50 and you should receive your certificate immediately via email.
Requirements for a Certificate of Good Standing
You must be registered as a business entity in that state. Operating as a sole proprietorship does not require registration in Hawaii, so those entities are not able to obtain a certificate of good standing.
Corporations and LLCs, like your business, must be registered with the state, so they are able to obtain the certificate. In Hawaii, partnerships are also required to register with the state, so they can obtain a certificate as well.
How Much Does a Hawaii Certificate of Good Standing Cost?
Again, the fee to obtain a certificate of good standing in Hawaii is $7.50. But it’s well worth it because this is an official document that proves your business’ financial accountability and could open the door to greater investment and expansion.