To get a Certificate of Good Standing in Alabama, you actually need to know which certificate you’re after, because the state issues two of them through two different agencies. The Secretary of State issues a Certificate of Existence, which proves your entity is legally formed and active. The Department of Revenue issues a Certificate of Compliance, which proves you’re current on state taxes. Banks, lenders, and other states almost always want the first. Tax matters, license applications, and closing a business call for the second. Ordering the wrong one wastes both the fee and the wait.
Certificate of Existence From the Secretary of State
This is the document most people mean when they say “good standing.” It verifies that your entity was properly formed or qualified to do business in Alabama and that the Secretary of State has received no notice of dissolution, withdrawal, or expiration. The application form itself notes that it is not a tax compliance document.
How to Order
You have two options. Ordering online through the Secretary of State’s website is fastest: pay by credit card and the certificate is issued immediately, printing from your own printer with the Secretary of State’s seal and an authentication number. A color printer even reproduces the gold accents.
For a mailed copy, download the application from the Secretary of State’s site, enter your entity’s exact legal name and nine-digit Alabama Entity ID Number (formatted 000-000-000), and send two copies with payment to Business Services in Montgomery. Mail applications are processed within 24 to 48 hours of receipt and returned by regular USPS unless you include a prepaid overnight courier envelope.
Fees
The statutory fee under Alabama Code 10A-1-4.31 is $25.1Alabama Legislature. Alabama Code 10A-1-4.31 – Filing Fees; All Entities
- Mail or in-person: $25, payable by check, money order, or credit card.
- Online with immediate delivery: $27.75 by credit card, which includes a $2.75 service-provider convenience fee.
What Keeps You Eligible
Your entity has to be active on the Secretary of State’s records, meaning properly formed or registered and not administratively dissolved, revoked, or withdrawn. Worth knowing: Alabama corporations are no longer required to file annual reports with the Secretary of State,2Alabama Secretary of State. Business Entities which used to be the most common reason entities fell out of good standing on the SOS side.
Certificate of Compliance From the Department of Revenue
The Certificate of Compliance verifies that your business has filed all required tax returns and paid any taxes shown as due.3Alabama Department of Revenue. Certificate of Compliance It’s the one you need for tax-related matters, some licensing applications, and any time you’re winding down or selling the business.
How to Order
All requests go through the Department of Revenue’s Alabama Interactive portal. Mail and in-person requests are not accepted.3Alabama Department of Revenue. Certificate of Compliance After you submit, the Department reviews your tax account and emails you either the certificate or contact information for the staff who can help you resolve outstanding issues. If you clear up a problem, you can submit a new request; the certificate reflects your status at the moment it’s issued.
Fees and Processing
The fee is $14 per request: $10 for the certificate and $4 for processing. Each additional request costs another $14.3Alabama Department of Revenue. Certificate of Compliance Online requests are typically processed within two to three business days.4Alabama Department of Revenue. Certificates of Good Standing Now Available Online
What Keeps You Eligible
You must have filed all required business privilege tax returns and paid what’s owed. Every corporation, LLC, and disregarded entity doing business in Alabama or registered under Alabama law files a business privilege tax return each year.5Alabama Department of Revenue. Alabama Business Privilege Tax The obligation continues every year the entity exists, whether or not you’re actively operating, until you formally dissolve or withdraw through the Secretary of State.
One exemption applies. For tax years beginning after December 31, 2023, entities whose calculated business privilege tax is $100 or less are fully exempt and don’t have to file a return.5Alabama Department of Revenue. Alabama Business Privilege Tax
Which Certificate You Actually Need
The certificates don’t overlap, and being current with one agency doesn’t help you at the other. Match the request to the reason:
Get a Certificate of Existence when you’re:
- Registering to do business in another state. Most states require a certificate from your home state when you apply for foreign qualification.6Alabama Secretary of State. Application for Certificate of Existence of Registered Entities
- Opening a bank account or applying for a loan. Banks commonly want proof the entity is active and properly registered, and most want a certificate issued within the last 30 to 90 days. Don’t order one months before you need it.
- Entering a contract or partnership where the other side runs due diligence.
Get a Certificate of Compliance when you’re:
- Dissolving or withdrawing your entity. You must obtain one before the Secretary of State will accept your Certificate of Withdrawal, and it cannot be more than six months old when SOS receives it.5Alabama Department of Revenue. Alabama Business Privilege Tax
- Selling the business. Buyers and their attorneys want confirmation that no outstanding state tax liabilities travel with the purchase.
- Applying for or renewing a license with a state agency that requires proof of tax compliance.
If You’re Not in Good Standing
If the Secretary of State has administratively dissolved your entity, typically for failing to maintain a registered agent or meet formation requirements, you need to reinstate before you can get a Certificate of Existence.
For an LLC, reinstatement means mailing a completed reinstatement form and a copy of the original certificate of formation to the Secretary of State with a $100 fee, payable by check, money order, or credit card. Online filing isn’t available for reinstatements; the form must be mailed or hand-delivered.7Alabama Secretary of State. Certificate of Reinstatement If the entity’s original name is no longer available, add “reinstated” after the name. Once filed, reinstatement takes effect immediately.
On the tax side, if the Department of Revenue finds you’re out of compliance, you’ll receive contact information for the staff who handle these situations instead of a certificate. File any missing business privilege tax returns and pay what’s owed, then submit a new request. Alabama law authorizes the Department to assess additional tax, penalties, and interest on unfiled returns,8Alabama Legislature. Alabama Code 40-14A-25 – Filing of Returns and those keep compounding the longer you wait.
Closing a Business the Right Way
The order of operations matters. Alabama requires a Certificate of Compliance from the Department of Revenue before the Secretary of State will accept a dissolution or withdrawal filing.5Alabama Department of Revenue. Alabama Business Privilege Tax The sequence:
- Submit the $14 Certificate of Compliance request through the Department of Revenue’s online portal.
- Resolve any outstanding obligations by filing missing returns and paying any tax due.
- Receive the certificate. You have six months to use it.
- File the dissolution or withdrawal with the Secretary of State, attaching the Certificate of Compliance.
Simply ceasing operations without formally dissolving is one of the more common mistakes Alabama business owners make. The business privilege tax return requirement continues every year the entity exists, and the Department of Revenue can assess penalties and interest on the unfiled returns. Years later, when you try to start a new venture, the old entity may block your path.