The status of a company under the laws of a particular state. The requirements for good standing vary by state, but generally good standing indicates that the company owes no state taxes and has filed all requisite reports with the state. Failure to be in good standing generally means the company has no standing to sue in the courts of that particular state.

A certificate showing that a company is in good standing (known as a good standing certificate or certificate of good standing) is often requested in connection with the closing of a finance, M&A, or securities transaction. For more information on closing obligations, see Closing a Loan Transaction Checklist and Closing Private M&A Transactions Checklist.