Obtaining a Certificate of Compliance in Nebraska

Discover the power of a Certificate of Good Standing in Nebraska for your business. Dive into our comprehensive guide, providing insights on obtaining and maximizing the benefits of this essential document to enhance your company's standing and operations.

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A Nebraska Certificate of Good Standing (CSG) is an easy way to prove that your business exists and is in compliance with state law. Here’s how to get one.

If your business received the Nebraska CGS, it means that the state has given you the “thumbs up” for being compliant. Although the CGS isn’t a mandatory document to have to be in compliance, there are situations in which you may be asked to produce one. If you want to know more about being legally compliant and how we can help, check out ZenBusiness’s Worry Free Compliance service.

In this guide, you’ll learn the benefits of a CGS and the various scenarios in which you may need one.

What is a Nebraska Certificate of Good Standing?

A Nebraska CGS is documented proof that validates the legal compliance of your business with state government regulations. A CGS acknowledges the fact that your business is fulfilling its duties towards the state at every checkpoint.

The certificate ensures that the state views your business as a reputable entity. Therefore, it can help you acquire financing, sell your business, or partake in certain transactions.

Which Nebraska office issues Certificates of Good Standing?

You can request a CGS from the Nebraska Secretary of State. They offer the service to order a CGS under the Corporate and Business section of their website. Registered entities can pay a fee of $6.50 (as of 2021) with a credit card to apply for the online version of the certificate. The certificate comes with the seal of Nebraska and the signature of the Secretary of State.

If you want to have the physical document, the fee is $10.00 for a mailed certificate. The CGS will be sent through the United States Postal Service after your order has been processed.

What does a Certificate of Good Standing confirm?

A CGS confirms that your company is running in adherence to the law. With a CGS, no government official can question your Nebraska biennial filing reports or franchise tax payments.

It means that your entity hasn’t faced any suspension or default in tax payment and the paperwork is in order.

The Nebraska CGS contains the following information:

  • The name under which your business is registered
  • Date of formation of the entity
  • A declaration that no occupational taxes are unpaid by the corporation
  • A statement that all biennial reports have been filed punctually
  • It certifies that no Articles of Dissolution have been filed.

Why might a business need a Nebraska Certificate of Good Standing?

Why should you get a CGS if it’s not a mandatory document? Here are a few situations where it will help:

Registering to do business in another state

In a different state, your business will be considered a foreign (out-of-state) entity. The new state will require a CGS to prove your compliance with the laws in your state of origin. Only after reviewing your ability to adhere to the rules will they allow you to carry out business in their jurisdiction.

Securing funding

If you’re looking for capital or funding, a bank, financial organization, or investor will likely need proof of your financial credibility. A CGS will provide information that identifies your business as eligible for funding.

Opening a business bank account

A business bank account will help you separate your personal and business accounts. A bank or financial institution might sometimes require you to submit your Certificate of Good Standing along with your business permit.

Buying business insurance

A business may have to purchase insurance such as general liability, professional liability, employee insurance, product liability insurance, etc.

An insurance company will use the CGS as a testament to the entity’s competence.

Contract formation with state/other business

If your business will interact with other businesses or states, the other party may want to verify your legitimacy. A CGS will come in handy to show your business’s journey.

Selling/transferring part or all of the business

When you’re selling your company, the buyers will want to know if they’re investing their money in the right place. They’ll need a certificate that shows the status of the company to make an informed decision.

Renewing certain permits and licenses

Some permits and licenses for your business may require a CGS before they can be renewed. This certificate confirms that your company is in good standing.

What Nebraska entities can obtain a CGS?

The state of Nebraska can provide a CGS only for businesses that are registered with the state. These are business entities such as LLCs, corporations, and limited liability partnerships. Entities that don’t require registration with the state, such as sole proprietorships, can’t get a CGS.

How to get a Nebraska Certificate of Good Standing

You can request a CGS by using the Nebraska Secretary of State website. Your document will be processed after you follow the steps below:

Register a user account with the Nebraska Secretary of State

Before you can order a CGS, you have to register with the Secretary of State website. You’ll need to provide your name, business name, email, and address.

Perform a compliance check on your business

If you want to apply for a Nebraska CGS, your business needs to be in compliance with the state rules. All reports and documents should be updated and accurate. The state requires most registered businesses to file biennial reports. You should have filed all reports and also have no unpaid dues or unpaid taxes.

Make sure all licenses and permits for your company are current. Expired licenses will cause the state to reject your request. If you’re not looking forward to the task of performing these compliance checks, you can always outsource it to our capable team.

Apply for a Certificate of Good Standing

If you’ve tackled the compliance check process, then you’re ready to apply for your CGS. The Nebraska Secretary of State website has a simple process to procure your document.

Enter into the portal and conduct a business entity search, either through name or account number. After you enter the details, you’ll reach a page that displays all your business information.

You can choose the document you want to purchase, whether it’s the online or physical version. Click on “Add Items to Cart.” Select the number of copies you want, if opting for mail service, and then continue to checkout. Fill in the details and make the payment with your credit card.

Validity of Certificate of Good Standing

The validity of a CGS depends on the entity’s state or state of formation. A Nebraska CGS doesn’t have an expiration date. However, certain banks might demand a CGS that’s no more than 30 days old. Keep these details in mind while applying.

Send to requesting party

After you procure your CGS, you can send it to whichever organization or individual requires it for verification purposes.

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 Nebraska Certificate of Good Standing 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.

Nebraska Certificate of Good Standing FAQs

  • A Nebraska CGS costs $6.50 for an online document and $10 if you want a physical one mailed to you. The document comes with the State Seal and the Secretary of the State’s signature.

  • It will take around three to four days for the online processing and about a week’s time for the physical document (sent by mail).

  • No. Nebraska doesn’t provide rush services.

  • It’s not mandatory to obtain a CGS to stay compliant in Nebraska. But, it helps when merging with other businesses, requesting funding, selling, expanding to other states, opening a bank account, and updating permits and licenses.

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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