How to Get a Certificate of Good Standing in Michigan | A Comprehensive Guide

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Obtain a Certificate of Good Standing in Michigan

If you want to start an LLC in Michigan, you should be aware that you need a Certificate of Good Standing to operate. A Certificate of Good Standing is one important document you’ll want in such situations. It is an official document issued by the Michigan Secretary of State’s office. It proves that a business entity is duly registered, authorized to transact business, and compliant with all state regulations and requirements. This certificate is essential for businesses in various situations, such as opening a bank account, obtaining financing, registering a foreign entity to do business in Michigan, and engaging in business transactions. 

In this article, Webinarcare Editorial Team will provide an in-depth guide on Getting a Certificate of Good Standing in Michigan, outlining its eligibility requirements, the application process, usage, and frequently asked questions. You must be guided by all the factors gathered in this article.

How to Get a Certificate of Good Standing in Michigan

What is a Certificate of Good Standing?

A Certificate of Good Standing is a document issued by the Secretary of State’s office in a specific state, such as Michigan. This certificate confirms that the corporation, LLC, or other business entity is legally registered and authorized to conduct business within the state. It also verifies that the entity has complied with all state requirements, such as filing Annual Reports and paying necessary fees. The Certificate of Good Standing is often required when you start a business or qualify to register a Foreign LLC in Michigan.

Acquiring a Certificate of Good Standing in Michigan is a crucial step in your journey after starting an LLC in Michigan. It’s your badge of authenticity that validates your commitment and legal standing in the world of business.

– WEBINARCARE EDITORIAL TEAM

How to Get a Certificate of Good Standing in Michigan

In obtaining the Certificate of Good Standing in Michigan, there are things that you should consider, including getting and submitting the form, paying for the filing fee, and receiving the Certificate of Good Standing.

Step 1: Get and Submit the Form

The first thing you need to do is get the form and submit the form for your Certificate of Good Standing. The form is available on the Michigan Secretary of State website. You can download the form and mail it or submit it online. 

Online Application Process:

  1. Visit the Michigan Secretary of State website: In Michigan, you can visit the Michigan Secretary of State which offer an online portal for business services that includes the option to request a Certificate of Good Standing.
  2. Register an account: You may need to create an account or log in to your existing account to access the application process.
  3. Provide required information and documentation: The online application typically requires basic information about your business, such as the entity name, identification number, and business type. You may also need to upload supporting documents. 

Paper Application Process:

  1. Download and complete the appropriate forms: Visit the Michigan Secretary of State website to download the required application forms for a Certificate of Good Standing. Complete the forms, ensuring all information is accurate and up-to-date.
  2. Provide required documentation: In Michigan, you may need to include copies of your registration documents, Articles of Organization, annual reports, or other supporting materials.
  3. Mail or deliver the application: Once you have completed the forms and gathered the necessary documents, mail or deliver the application package to the Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau — Corporations Division, P.O. Box 30054, Lansing, MI 48909, along with the required fees.

Step 2: Filing Fee and Processing Time

The fees for obtaining a Certificate of Good Standing cost around $10. Check the Michigan Secretary of State website for the most up-to-date fee schedule. However, the Certificate of Good Standing’s processing time varies from state to state. It can take a few days to a few months to obtain the Certificate of Good Standing in Michigan.

Step 3: Receive the Certificate of Good Standing

Your forms begin processing once the form and the required filing fee are submitted. The procedure might take a long time. You can inquire with the Michigan Secretary of State whether they provide expedited filing; the document may take many months to arrive.

Eligibility Requirements for Michigan Certificate of Good Standing

To obtain a Certificate of Good Standing, a business entity must meet specific eligibility requirements. These requirements vary depending on the type of business entity type and compliance with Michigan regulations.

Entity Types

The following entity types can obtain a Certificate of Good Standing in Michigan:

Corporations

A corporation is a legal entity that is separate and distinct from its owners, known as shareholders. It is created under a state’s laws and given certain rights, privileges, and liabilities. The formation and operation of a corporation are governed by corporate law, which varies depending on the jurisdiction where the corporation is established. Corporations can be classified as S-Corporation, C-Corporation, and Non-profit Corporations.

Limited Liability Companies (LLCs)

An LLC, or Limited Liability Company, is a type of business structure that combines the flexibility and simplicity of a partnership with the limited liability protection of a corporation. If you plan to form an LLC, we provide the Best LLC Services for your business.

Non-Profit Organizations

A non-profit organization (NPO) is a type of organization that operates for a purpose other than generating profit for its owners or shareholders. Instead, the primary objective of a non-profit is to serve the public interest or support a particular social, educational, religious, or charitable cause. 

Limited Partnerships (LPs)

A Limited Partnership (LP) is a type of business structure comprising two or more partners with different levels of liability and involvement in business management. There are two types of partners in a limited partnership:

  • General Partners: These partners have unlimited personal liability for the debts and obligations of the partnership, and they are responsible for managing the business’s day-to-day operations. 
  • Limited Partners: These partners have limited liability, meaning their personal assets are generally protected, and their financial responsibility is limited to their investment in the partnership. 

Compliance with State Regulations

A business must be in good standing with the Michigan Secretary of State’s office. This means that the entity has complied with all state regulations and requirements, including:

  • Submitting annual reports and fees on time
  • Having the necessary licenses and permits to operate in Michigan
  • Maintaining a Resident Agent with a physical address in Michigan.

If you want to hire a Resident Agent for your LLC, you should know more about Michigan Resident Agent Services.

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Using Michigan Certificate of Good Standing

Michigan Certificate of Good Standing is an essential document for businesses in various situations, such as:

  • Business Transactions: When entering into contracts, partnerships, or other transactions, other parties may require proof that your business is in good standing with the state. A Certificate of Good Standing serves as this verification.
  • Opening a Bank Account: Financial institutions often require a Certificate of Good Standing to open a business bank account or line of credit. Opening a bank account for your Michigan business is essential for maintaining a clear separation between your personal and business finances. This separation helps preserve the limited liability protection offered by the LLC structure. You can check out the Best Banks in Michigan, which offers the best fees, services, and convenience for your business needs.
  • Registering a Foreign Entity to Do Business in Michigan: If your business is registered in another state but wishes to operate in Michigan, you may need to provide a Certificate of Good Standing from your home state as part of the registration process. Aside from that, you also need to hire a Resident Agent to file for your Certificate of Good Standing in the Michigan Secretary of State office.
  • Obtaining Financing or Loans: Lenders may require a Certificate of Good Standing to verify that your business is in good standing before approving financing or loans. You can check out the Best Small Business Loans for your Michigan business.

It is essential to note that depending on the state, a Certificate of Good Standing has a limited validity period, usually between six months and one year. As a result, businesses should ensure they keep their Certificate of Good Standing up-to-date by renewing or updating it as necessary.

Difference Between a Certificate of Status, Certificate of Good Standing, and Certificate of Existence

While the terms may vary by state, they generally refer to the same document. A Certificate of Status, Good Standing, or Existence proves that a business is authorized to transact in the state and has complied with all state regulations and requirements.

How Long Does it Take to Obtain a Certificate of Good Standing?

The processing time for a Certificate of Good Standing can vary depending on the state and the application method. Online applications are typically processed more quickly, often within a few business days. Paper applications may take longer, with processing times ranging from one week to several weeks.

Can I Transfer a Certificate of Good Standing From One State To Another?

A Certificate of Good Standing  is specific to the state in which it is issued. If you are registering a foreign entity to do business in Michigan, you will need to obtain a Certificate of Good Standing  from your home state, in addition to meeting any other registration requirements in Michigan.

Consequences of Not Having a Valid Certificate of Good Standing

Operating a business without a valid Certificate of Good Standing  can have serious consequences, such as fines, penalties, and even the suspension or revocation of your business’s authorization to operate. Additionally, you may need help when attempting to engage in business transactions, open bank accounts, or obtain financing.

FAQs

What is a Certificate of Good Standing?
It’s a document that verifies a business’s legal status and compliance with all the state requirements.
How can I obtain a Certificate of Good Standing in Michigan?
Simply visit the state’s official website and follow the instructions provided.
Can I request the certificate on behalf of someone else?
Yes, as long as you have the necessary authorization to request it.
How much does it cost to get a Good Standing Certificate in Michigan?
It costs $10 to obtain a Good Standing Certificate in Michigan.
Is it possible to expedite the request for a Certificate of Good Standing in Michigan?
Yes, it can be done the same day for an additional fee, but only in person.
What information will be provided on the Certificate of Good Standing in Michigan?
The name of the business, its legal structure, D&B information, and status of compliance in Michigan.
How long is a Michigan Certificate of Good Standing valid?
It’s valid only on the date of issuance.
Why do businesses need a Certificate of Good Standing in Michigan?
They need a Certificate of Good Standing to confirm their legality and credibility in front of customers, partners, and regulatory agencies.
Can I still receive my Certificate of Good Standing if my business is currently inactive in Michigan?
Yes, as long as you fulfilled the state’s requirements for the cancellation or dissolution of your business entity.
Can a foreign business entity obtain a Michigan Certificate of Good Standing?
Yes, as long your business is registered with the State of Michigan.
Once I get the Michigan Certificate of Good Standing, is there anything extra I will need to do?
No, you don’t need to do anything. You got what you needed.
Should I receive a confirmation email if I submit a request online for a Certificate of Good Standing in Michigan?
Yes, you’ll receive an email confirmation.
What timeline should I count for processing my request for Michigan’s Certificate of Good Standing?
Generally, it takes three to five business days to answer the requests.
Can I request the certificate in person in Michigan?
Yes, however, only the expedited service can be processed the same day unless you wait for the nominal timeframe of 3-5 business days.
Do I need to pay any fee(s) to obtain a Certificate of Good Standing for a non-profit business there?
Only corporations and non-profit organizations are required to pay a state filing fee ($10) there.
Are there any instances that could disqualify a business from obtaining a Certificate of Good Standing in Michigan?
Yes, if your business fails to comply with state laws or fails to meet the eligibility criteria of filing.
Should I provide the EIN (Employer Identification Number) of my business to get a Certificate of Good Standing in Michigan?
A social security or EIN number is optional, not a requirement for getting the Michigan Certificate of Good Standing.
Can I file my request for the Michigan Certificate of Good Standing by mail?
Yes, you can throuh mail or online by visiting the official state government site.
What federal company requirements are tied to applying for a Certificate of Good Standing in Michigan?
There aren’t any special federal guidelines from the SBA or any federal entities associated with Michigan Certificate of Good Standing.
Is there a requirement that my corporation must file annual reports?
Yes, every corporation has to file Michigan reports annually.
Can I look up and verify the status of my business anytime?
Yes, make sure you have your business EIN handy and then use Michigan’s business information search platform to check business status.
Will I receive a refund fee if I don’t qualify for a Certificate of Good Standing in Michigan?
No, you won’t get a refund if your request makes you ineligible.
Once I have my Michigan Certificate of Good Standing, would I be required to submit and pay that amount each year?
As long as you’re meeting the state laws mentions, you don’t need to follow the same process again to get a new certificate right away.
What happens when I close my Michigan business after I uppost to get a certificate?
If the company is no longer carrying business, you can submit legal documents (if available) filed for termination or dissolution.
Is it required to get my business registered firstly with Michigan’s Secretary of State before representation for a Certificate of Good Standing there?
Yes, you should register with the Michigan government.
What if I lose my Certificate of Good Standing in Michigan?
Another original or copy can be downloaded after you login to your account on Michigan’s platform.
How long does it take to process the document of the certificate for the Michigan Certificate of Good Standing?
Ideally business days should be counted that means 3-5 business days.
What could lead to rejection of application of Business Info Change or Certification of Entity Status of Michigan State?
Of many reasons; the statewide warrant process rate is outstanding, active debt obligations, pending administrative hearings, unidentified unclaimed improvements, and so on could disallow your denial.
Where do I apply for the Michigan Certificate of Good Standing?
You have two options-Paper Application (mail or in-person) or Online Payment.
Where can I find my business’ unique ID for Michigan Assembly/Registration purposes?
Verify Michigan trademark starting by searching on Database. So your trademark acts as the perfect fixture to identify business info legally.

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Conclusion

A Certificate of Good Standing in Michigan is an essential document for businesses operating within the state. Ensuring that your business remains in good standing with the state by complying with all regulations and requirements and keeping your Certificate of Good Standing  up-to-date is crucial. Suppose you need assistance obtaining a Certificate of Good Standing  or have questions about the process. In that case, it is best to consult with the Michigan Secretary of State office or seek legal advice from a professional familiar with your state’s business laws.

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