Obtaining a Certificate of Compliance in New Jersey

Secure the legitimacy of your business in New Jersey with a Standing Certificate – delve into our comprehensive guide to understand the importance of this document and the steps to obtain it, ensuring your company's reputation remains strong and reliable.

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New Jersey is a fantastic place to start a company. The state is a major hub for corporations and limited liability companies (LLCs) that serve its large industrial sectors. Business is never slow in the Garden State!

To operate in New Jersey, it’s important to stay compliant. A New Jersey Standing Certificate is the best way to prove that your business is legitimate and in compliance with state laws. In this guide, we’ll explain how to get a Standing Certificate in New Jersey and under what circumstances you may need one.

What is a New Jersey Standing Certificate?

A Standing Certificate is a legal document that proves that your business entity exists, is in compliance with state law, and allowed to conduct business in New Jersey. This certificate is also known as a Certificate of Good Standing, Certificate of Status, or Certificate of Existence depending on which state you’re in.

In New Jersey, Standing Certificates are issued by the Division of Revenue and Enterprise Services. To be eligible for one, you need to be in good standing regarding New Jersey’s legal requirements for businesses.

At ZenBusiness, we understand that it can be hard to keep track of your standing, and we’re here to help out. Read about our worry free compliance service and what it offers to keep you stress-free and in line with New Jerseys’s requirements.

What does a Standing Certificate confirm?

Curious about what you’ll find in your Standing Certificate? We’ve got the answers you need.

The release of a New Jersey Standing Certificate is confirmation that your corporation or LLC is currently satisfying the state’s requirements in terms of:

  • Paying registration fees and other applicable charges
  • Submitting the annual statement or annual report
  • Paying franchise taxes

Again, these things won’t actually be stated on your certificate. They’re implied. You’ll instead find the following on your certificate:

  • The date on which your business was allowed to transact business in New Jersey.
  • That on the date the New Jersey Standing Certificate is issued your LLC or corporation is in compliance with state law and therefore has good standing.
  • That your company is currently allowed to transact business in the state.

New Jersey also offers three types of Standing Certificates:

  1. Short-form standing.
  2. Long-form standing with officers and directors.
  3. Long-form standing with charter documents.

You’ll have to verify which one you need. If you’re asking for a certificate in order to expand out of state, the short-form standing Standing Certificate will usually suffice.

Why do you need a New Jersey Standing Certificate?

The main reason why you might need a New Jersey Standing Certificate is if you want to expand out of New Jersey. If you’re planning to move into other U.S. states, their governments usually ask you to submit a New Jersey Standing Certificate upon registration.

This is because foreign (out-of-state) companies need to prove that they’re compliant with the laws of their origin states before being allowed to transact business outside of it. This is usually a requirement across most states in the United States.

Other likely reasons why you might want a CGS are:

  • To secure funding (public or private): A funding agency might want to be sure of your status before giving your funds.
  • To open a business bank account.
  • To purchase insurance for your business: Both banks and insurance companies might request a Standing Certificate.
  • To sign a contract with another business or with the state: An entity looking to work with you could choose to ask for a Standing Certificate.
  • To sell or transfer a part of your business: Whoever intends to acquire your business has the right to know if your company is in good standing.
  • To renew certain permits and licenses: This is usually state- and business-specific, so check with the relevant authorities to see which applies to you.

What New Jersey business entities can request a Standing Certificate?

Only entities registered with the state of New Jersey can request a CGS.

Entities that need to register with the state are:

  • New Jersey LLCs, including professional LLCs
  • Corporations, including profit corporations, professional corporations, and nonprofit corporations
  • Limited liability partnerships (LLPs)
  • Limited partnerships

Sole proprietorships can’t request a Standing Certificate and can’t be asked to submit one in New Jersey.

How do you get a New Jersey Standing Certificate?

There are two steps to obtaining a New Jersey Standing Certificate: Be sure you’re in compliance and then request it.

Staying compliant

Staying compliant involves primarily licenses, taxes, and annual reports. Let’s have a more detailed look at each one of them.

Licenses

License requirements can be different at the federal, state, and local levels. To operate, you need to have the right ones, and you need to renew them when necessary. Make sure your licenses are in order before you apply for a Standing Certificate and verify with the relevant authorities.

Taxes and State Fees

New Jersey taxes need to be paid on time. Be they unemployment insurance tax or any other fee that the Garden State requires you to pay, you’ll have to have filed them before you apply for a Standing Certificate.

Annual Reports

At the end of the business year, your LLC or corporation must file an annual report. The aim of this document is to describe your company’s activities over the previous year, while also confirming information such as the entity’s address, registered agent, managers, directors, and officers. As with licenses and taxes, you need to be certain your annual documents are in order before requesting a New Jersey Standing Certificate.

We get it. This is a lot of info and a lot of work. It’s easy to forget something or make a mistake. It also steals precious time that you’d rather spend growing your business. Fortunately, ZenBusiness has a great worry free compliance service that you can easily sign up for so that you can concentrate on the things that truly matter to you.

Requesting Your New Jersey Standing Certificate

The best way to get a Standing Certificate in New Jersey is online. It’s a fast and straightforward process. Here’s how to do it.

Like we described earlier, there are three types of Standing Certificates that you can ask for: short-form standing, long-form standing with officers and directors, and long-form standing with charter documents. Be sure you know what you need before proceeding further.

Start by accessing the website of the Business Records Service section of the Division of Revenue and Enterprise Services website.

Click on “Business Entity Standing Certificate.” Once you do, the site will ask you for either your business name, business ID, principal name, registered agent, or associate name.

Enter the info and click continue. On the next page, select the certificate you want. It’s next to your business name.

Finally, choose whether you want to pay with a credit card or an e-check. Visa, Mastercard, American Express, and Discover are accepted.

Fees as of June 2021 are:

  • Corporate and Limited Partnership Standing Certificates (includes short- and long-form standings): $25
  • Short-form Standing Certificate of LLCs and LLPs: $50
  • Long-form Standing Certificate of LLCs and LLPs: $100

There’s also a $2 portal fee per certificate.

You should receive the Standing Certificate immediately. Once you have it, verify the validity of the certificate for its intended use. Validity can vary across US states or the entity’s formation process. Bear in mind that the person/entity requesting the CGS might want one that’s relatively recent and may not accept a CGS that’s older than, for example, a month. If you’re sure the certificate you have is what you need, send it to the party that has requested it.

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 New Jersey Standing Certificate 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 Standing Certificate, our Certificate of Good Standing service can help.

New Jersey Standing Certificate FAQs

  • Corporate and limited partnership Standing Certificates (Includes short- and long-form standings) cost $25. A short-form Standing Certificate of LLCs and LLPs is $50, while a long-form Standing Certificate of LLCs and LLPs is $100. There’s also a $2 portal fee per CGS.

  • You should receive the certificate immediately after payment.

  • There’s no need to expedite the certificate since the online process is immediate.

  • No. A certificate isn’t required to stay compliant in New Jersey. It’s the opposite. If you want to request a CGS you need to stay compliant and have a good standing with the state. This involves paying local and state taxes, owning appropriate licenses and permits, and filling out your corporation or LLC’s annual report.

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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