“Good Standing” status means that an entity is properly registered, is up to date on all registration fees and required document filings, and is legally permitted to engage in business activities. Two of the most common issues we see affecting Good Standing status are maintenance of a registered agent and filing of annual reports.

All entities must maintain a registered agent with the Secretary of State in the state in which it is formed and any other state where the entity is registered to do business. The primary duty of the registered agent is to notify a business that legal action has been taken against it. Generally, the registered agent may be an individual resident or an organization with a valid mailing address which is registered or authorized to do business in that state. An entity may not serve as its own registered agent.

While it may seem trivial, maintaining a valid registered agent and address on record is important for an entity to maintain its Good Standing status. RR&A often recommends using a service provider that specializes in providing registered agent services to keep your entity in Good Standing.

As part of the ongoing requirements for any entity to maintain Good Standing status, the entity will be required to file a report (along with any applicable filing fees) in its state of formation and any other state where the entity is registered to do business. Sometimes called the Annual Report (Delaware), Statement of Information (California), Public Information Report (Texas), or Periodic Report (Colorado), they all generally require the same information and are most commonly required on an annual or biennial basis. The primary purpose of the reports is to update important information such as your registered agent, mailing address, physical address, and even managers and members with the Secretary of State.

At RR&A, we can help your entity by providing a checklist of specific documents and filings that are necessary to keep your entity in Good Standing in any state.