A Certificate of Good Standing is an official document issued by a state authority confirming that a business, such as a PEO, is compliant with registration and tax obligations.
- What is a Certificate of Good Standing?
Answer: It is a document confirming a business’s compliance with state registration and tax rules. - Who issues a Certificate of Good Standing?
Answer: It is issued by a state’s Secretary of State or equivalent agency. - Why is a Certificate of Good Standing important for HR?
Answer: It ensures a PEO or vendor is legitimate for benefits or payroll services. - How can a business obtain this certificate?
Answer: A business applies through the state agency, often online, with required fees. - What happens if a certificate is not maintained?
Answer: It may lead to legal issues or loss of business credibility.
