In Illinois, 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 key business financing. Thankfully, this guide provides all the information you need to get this certificate in Illinois.
What is a Certificate of Good Standing for Illinois?
In Illinois, 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 Illinois, 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. A 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 Illinois 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 Illinois?
In Illinois, the Secretary of State issues certificates of good standing. Just go to the secretary of state’s website to fill out the required form. The cost is $25 and you should receive your certificate immediately.
Requirements for a Certificate of Good Standing
You must be registered as a business entity in that state. Operating as a sole proprietorship or a partnership does not require registration in Illinois, 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.
How Much Does an Illinois Certificate of Good Standing Cost?
Again, the fee to obtain a certificate of good standing in Illinois is $25. 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.