# Good standing

> Good standing — A state's confirmation that a corporation exists and is current on its annual reports and franchise taxes. In Delaware a year of unpaid franchise tax makes the charter void; banks, investors and other states ask for the certificate.

Source: https://lopifi.com/glossary/good-standing
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is good standing?** In accounting, good standing means a state's confirmation that a corporation exists and is current on its annual reports and franchise taxes. In Delaware a year of unpaid franchise tax makes the charter void; banks, investors and other states ask for the certificate.

## Also known as

- Certificate of good standing

## Words this system refuses for it

- solvent
- compliant unqualified

- **Category:** Entity & compliance
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)