What “Good Standing” Actually Means for a Business

Written By Rowena Ulu

“Good Standing” is one of the most misunderstood terms in business.

Being in good standing generally means:

  • Required state filings are up to date

  • The entity is active with the Secretary of State

  • Fees and penalties are not outstanding

It does not automatically mean:

  • taxes are filed

  • Licenses are active

  • The business is fully compliant in every area

Good standing is entity-specific, not business-wide.

Business owners would verify their status directly with the Secretary of State and understand what filings are required going forward - not just whether the business was approved at formation.

Rowena Ulu
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Filing Taxes Does Not Mean Your Business is Compliant