BUSINESS QUESTION: I am trying to obtain a sizable business loan from a local bank. I am asked for a formation certificate and a standing certificate. Is it the same thing? If not, what is the difference?

Sep 17, 2014
ANSWER:
 
You reference to different documents: a “formation certificate” and a “good standing certificate” (not a “standing certificate”).  
 
A certificate of formation is the document which proves the coming into existence of the business.  It is issued on the same day the company becomes authorized to conduct business in the state of New Jersey.  
 
By contrast, a certificate of good standing is a document which anyone can obtain after the business was formed, to prove that the business was never suspended, dissolved or revoked (for example by failing to pay the annual taxes and fees) and that the business remains viable and duly authorized to conduct business in this state.