Obtaining a Certificate of Compliance in Kansas

The Kansas Certificate of Good Standing (CGS) certifies that a business has complied with applicable state laws, is in good standing, and is authorized to transact business within the state. In this article, we’ll explain the uses for a CGS and how to get one.

Who issues a Kansas Certificate of Good Standing?

The office of the Kansas Secretary of State (SOS) issues the CGS.

Important factors to consider when applying for a CGS

Compliance plays a big part in the issuing of the Kansas CGS. Through ZenBusiness’s worry free compliance service, business owners can rest easy knowing that all the necessary boxes to maintain their good standing status are checked.

If compliance matters aren’t up to date, it might interfere with the issuing of the CGS. Not having a CGS could prevent you from getting long-term leases, opening bank accounts, and expanding to other states.

Other states may refer to a CGS as a Certificate of Existence, a Status Certificate, a Certificate of Authorization, Certificate of Compliance, or a Certificate of Status. In Kansas, it’s typically called a Certificate of Good Standing.

What does a Certificate of Good Standing confirm?

There are several checks the Kansas Secretary of State’s office performs before issuing a CGS. The checks include whether the business is compliant with legislation such as franchise taxes, permits, licenses, and more. Businesses should be up to date with their annual reports as well.

Information on a Kansas CGS

The document lists the following information:

• Business entity ID
• Entity name
• Type of entity
• State of organization
• Resident agent
• Registered office
• Date of filing for registration

The document will indicate whether the entity is in good standing. It may provide details about the financial condition, business activity, and practices if available. If not, it will state that the information isn’t available.

It includes the date of the certificate, plus the Secretary of State’s seal and signature. There’s a certificate ID, which the reader can use to trace the validity of the certificate.

Why would a business need a Kansas Certificate of Good Standing?

While it isn’t mandatory for a business in Kansas to request a CGS, there are instances in which the document may be required. Events that may trigger a request include:

• Registering to do business in another state: To do business in another state, the CGS will usually accompany the application for the Certificate of Authority.
• Securing funding: Whether you approach a lender, investor, or financier, they might require you to confirm your status. A CGS usually meets this requirement.
• Opening a business bank account: A business bank account is an important step in formalizing your business. Some banks may request a CGS, especially if lending is on the table.
• Buying business insurance: Ensuring that the business is in good standing is important to insurers because it shows the risk factors of the business.
• Contract formation with the state or other businesses: Part of their due diligence is to ensure that your business is in good standing.
• Selling or transferring part or all of the business: A new owner will want to ensure compliance issues are in order before signing on as the owner/partner/director.
• Renewing certain permits or licenses: It’s up to the federal, state, or local authority to decide whether to issue a license or permit. One of the ways to reduce their risk is by requesting a CGS.

What Kansas entities can obtain a CGS?

State-registered entities, such as Kansas limited liability companies (LLCs), limited partnerships, and for-profit and not-for-profit corporations, can request a CGS. General partnerships and sole proprietors can’t request a CGS.

How to get a Kansas Certificate of Good Standing

Before submitting your request to the Kansas Secretary of State, it’s important to check whether all compliance matters are in order:

• Pay all annual fees and registration costs on time.
• Ensure all taxes are paid.
• If your business type requires annual renewals of registrations, permits, and licenses, make sure these are in order.
• See that the annual report is filed on time.
• Ensure that all business activities and practices are legal and verifiable.
• Provide all the required documents to the Secretary of State to avoid delays.

If your request is denied, the reason for the denial will be provided.

In certain instances, you may be requested to provide additional information to complete the request. For online requests, these additional requirements are visible when you access the company details through the Kansas SOS site.

Possible statuses

To request a CGS, a business needs to be active and in good standing. If not, these are the possible statuses:

• Dissolved
• Merged out of existence
• Consent to jurisdiction/status not required
• Withdrawn
• Forfeited — failed to timely file A/R
• Forfeited — failed to correct and return A/R
• Forfeited — failed to designate a new resident agent

For compliance matters, ZenBusiness offers assistance through our worry free compliance service.

Filing your CGS request

Online

The online process is accessible through the Kansas SOS website. Go to the site and search for your business or the business for which you want to get a CGS.

Phone Request

Phone (785) 296-4564 and request the certificate. Once done, the operator will process your credit card information. The document is processed after the payment.

Mail Request

Memorial Hall, 1st Floor
120 SW 10th Ave.
Topeka, KS 66612-1594

As of 2021, a CGS requires a $15 fee.

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

It’s important to find out from the requester what the conditions are regarding the validity of the CGS. For instance, find out whether they’ll accept the online printed document or whether they require the physical document from the SOS.

If you’ve requested a CGS before, there’s no real expiration date. However, some institutions and state departments may have a validity period. For instance, if more than a year has passed since the last CGS, it’s safe to assume that a new one is required. This is because taxes, licenses, and permits are renewed on an annual basis.

Send to the requesting party

It’s important to find out whether the requesting party will accept a simple printout of the entity status, or whether a CGS is required.

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 a Kansas CGS for you if you need one; you just pay the state fees. And, if you don’t have the worry-free compliance but still need a CGS, our Certificate of Good Standing service can help.