A certificate of good standing certifies that a company is legally registered with the state, is current on all state registration fees and required document filings and is legally permitted to engage in business activities in the state.

A certificate of good standing will have an expiration date, which is when the registration is due to be renewed, or when periodic documents or registration fees are due to be paid. This could be at the end of a calendar year or at some other time during the year when the state's laws require renewal or periodic filings.

A certificate of good standing is not a business or occupational license, which must be obtained in order to legally conduct business. A company can legally conduct business
where it is registered without obtaining a certificate of good standing.

A certificate of good standing may be required in connection with a sale, merger, or obtaining a loan from many lenders.

Certificates of good standing are issued by the California Secretary of State for the following types entities: (1) Corporations, (2) Limited Liability Companies, (2) Limited Partnerships, and (9) Limited Liability Partnerships.