A Certificate of Good Standing is a legal document written by a lawyer that certifies a company is authorized to do business within a particular state. The document verifies that the company has complied with all state laws, has filed all necessary paperwork, and has paid all required fees and taxes. It also confirms that the company is current with its annual reports and is not in default of any obligations. The Certificate of Good Standing is often required by banks, investors, and other third parties when conducting business with the company.