Obtaining a Certificate of Compliance in Arizona

Unlock opportunities in Arizona with a Certificate of Good Standing, showcasing your business's compliance and reliability. Explore the key steps to obtaining this essential document in our comprehensive guide below.

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Obtaining an Arizona Certificate of Good Standing (CGS) provides a business entity with the necessary evidence to show compliance with state laws and regulations. Here are the steps to take to get one for your business.

What is an Arizona Certificate of Good Standing (CGS)?

An Arizona CGS is a legal document that provides evidence of an entity’s registration and standing with the state.

These certificates are issued by the Arizona Corporation Commission (ACC), which is a public entity established by the state constitution.

Companies in need of such a certificate or concerned about compliance with the state can work with ZenBusiness to get the confirmation necessary to move forward in the application process. ZenBusiness’s worry free compliance service helps ensure that an entity has everything necessary to move forward with obtaining a CGS.

What does a Certificate of Good Standing confirm?

A CGS confirms that your entity is registered with the state and up to date on all compliance regulations with the Arizona Corporation Commission. It notes that your entity has taken the steps to set up a legal business and that the business in question has filed all appropriate paperwork where the commission is concerned.

This means that Arizona annual report have been properly filed and recorded and that franchise taxes are up to date. The certificate contains a statement from the commission noting that the business is in good standing with the state.

However, what the certificate doesn’t confirm — and this is also noted on the certificate — is the company’s standing with other state agencies. For instance, if a company is delinquent on fees with the Arizona Department of Revenue, the certificate will not note that issue.

For this reason, some entities may have to obtain more than one certificate or letter from various state agencies depending on the reason for the CGS. This is especially true for those companies expanding into other states.

Why might a business need an Arizona Certificate of Good Standing?

While having an Arizona CGS isn’t a legal requirement for compliance, it can be beneficial in certain situations. These include:

  • Registration to do business in another state
  • Opening a business bank account
  • Obtaining capital for your business
  • Purchasing insurance for your company
  • Selling the business or transferring it to another entity/individual
  • License/permit renewal

What Arizona entities can obtain a CGS?

Only those entities registered with the state can apply for a Certificate of Good Standing. This means Arizona LLC, other corporation types, and nonprofit entities are eligible for a CGS. Essentially, any business that has a state registration and a legal business structure in Arizona can obtain a CGS.

Sole proprietorships aren’t registered so are ineligible for a CGS. This business type is often administered under the personal Social Security number of the business owner. Therefore, the liability of the company is centered on the individual and not assigned to the business itself. In addition, this business structure also offers the least amount of liability protection for the business owner, although they are much simpler to set up.

How to get an Arizona Certificate of Good Standing

The process to obtain an Arizona Certificate of Good Standing isn’t complex; it just requires certain steps to ensure that your entity is adequately prepared to submit the correct information.

Check to make sure your business is in compliance

The first step to obtaining a CGS is to assure compliance for your entity with the state. Make sure you have no outstanding taxes or fees owed to the state. Double-check your Arizona annual report to ensure that the latest filings are a matter of public record.

This can be a comprehensive process, so you might let someone else do the heavy lifting in this case. The ZenBusiness worry free compliance service is one option to provide you with some much-needed assistance in keeping up with compliance issues.

Remember that a lack of compliance in one area may delay or even prevent you from getting a CGS altogether. In addition, you may need to check across multiple agencies for documentation. Arizona separates out the certificates from the Department of Revenue and the Certificate of Good Standing, so compliance in one area doesn’t mean compliance in both. As a result, the delay can halt your out-of-state expansion plans.

In addition, a CGS and other state documentation don’t prove compliance with federal laws and taxes. For federal taxes, you would have to contact the IRS.

Request a Certificate of Good Standing

There are several ways that you can apply for a CGS with the state. The first and most popular method is the online form. This platform allows you to pull up the name of your business through its state registration and fill in the required information.

You can then print the PDF from your computer after making your online payment.

Another option is to download the form and submit it in person or via mail. The filing address is:

Arizona Corporation Commission, Corporations Division
1300 W. Washington St.
Phoenix, AZ 85007

Make sure to enclose payment with your form’s submission.

Those requesting a CGS in person are subject to an additional expediting fee of $35 for receiving the document immediately.

The commission recommends that those submitting their forms via mail include contact information in case they have any questions while processing.

Fees associated with the request for a CGS are nonrefundable. Return service for the certificate is only available in-person, online, or via mail. Certificates will not be emailed.

Make sure your Certificate of Good Standing will be valid for its intended use

Once you apply for and receive an Arizona CGS, make sure that it’s valid for its intended use. Most companies request and receive this document to expand into other states. Check with the state in question to ensure that no additional documentation is necessary to avoid delays moving forward.

The is important because many entities require the CGS to fall within a certain date range, which is usually within 60 days. If there are delays because additional documentation is needed from other state entities, you may have to start the process of obtaining a certificate all over again. It always pays to check, however. Some entities may require a certificate dated within 30 days, while others might only need one dated within 90 days.

Send to requesting party

Submit the Arizona Certificate of Good Standing to the requesting party. If you’re submitting the original document, be sure to keep a copy for your files.

Also, take the time to ensure that the CGS is the only thing necessary to move forward, as it doesn’t show compliance with Arizona state taxes.

Conclusion

Compliance may not be simple to keep up with, especially when considering all the other aspects that make a business go round. At ZenBusiness, we understand that your business needs don’t stop after the business has been registered. ZenBusiness can help keep you in good standing with our worry-free compliance service. With this service, we not only help keep your business in compliance, but we can also secure an Arizona CGS for you if you need one; you just pay the state fees. And, if you don’t have worry free compliance but still need a CGS, our Certificate of Good Standing service can help.

Arizona Certificate of Good Standing FAQs

  • The cost for an Arizona Certificate of Good Standing is $10. The cost for expedited processing is an additional $35.

  • Processing time for expedited orders is five to seven days plus mail time. However, it can be as long as 15 to 17 days for standard orders plus mail time.

  • You can expedite a CGS request, cutting the processing time from 15 to 17 days to five to seven days.

  • A Certificate of Good Standing isn’t required to remain in compliance in Arizona. However, it does show that your entity has taken the appropriate steps.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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Written by Team ZenBusiness

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