Letter of Good Standing Template

Are you the owner of a real estate firm looking for investment capital for your next big development project? Maybe you’re an attorney looking to join the board of an international nonprofit? Your track record matters when pitching investors or approaching professional bodies. 

While your CV or audited financial statements go a long way to proving your success, adding a Letter of Good Standing to your business plan or membership application can seal the deal or get you the recommendation you need to join the board.

What is a letter of Good Standing and how can it benefit companies and professionals? Let’s dive into the purpose and importance of these letters and how they can give you an edge in business or professional circles. 

What Is a Letter of Good Standing? Is It Different from a Certificate of Good Standing?

If you’re a business owner you might already have a “Certificate of Good Standing” issued by the Secretary of State in the state where your business is registered. It’s a government document functioning like an affidavit. It shows that your company is compliant with state filing requirements and the company is authorized to operate in that jurisdiction.

A Letter of Good Standing is a different deal altogether. It’s a document issued by a professional person or legal entity endorsing you or your company. For instance, if you’re an accountant, you might request a Letter of Good Standing from the American Institute of CPAS, or the CEO of your firm. A business might secure a Letter of Good Standing from a partner, a supplier, an investor or any party which with they have an established relationship.

In short, the Letter of Good Standing isn’t an official government document, it comes from the private sector. It’s a testimony to the benefits of doing business with you, and another component of your track record you can leverage to grow your business or career.

How Personalized Endorsements Build Credibility for Businesses and Professionals

Your track record in business or as a seasoned professional goes further than just proving your past performance. It’s an indication of what companies, investors, and professional organizations can expect when dealing with you.  

If you run a company, you probably have a business plan and audited financial statements proving its financial health. If you’re a professional your CV shows your education, accomplishments, and career development. These documents prove your track record, but they might not be enough to seal the deal with prospective investors or professional organizations and membership associations. 

Adding a Letter of Good Standing to your application or proposal could be the defining factor that positions you ahead of the competition. It could open doors to new opportunities for growth, both in business and professional circles. 

A Letter of Good Standing is essentially a recommendation from another company, professional, or membership association. It’s a validation of your success as a reputable company or professional person. 

For companies, a Letter of Good Standing could come from your supplier showing that you’re financially responsible and you meet your creditor obligations. You could add it to your business proposal when applying for VC investment to show that your business is trustworthy and financially responsible. It’s also a way to add weight to your track record when expanding your business to international markets and working with foreign entities.

For professionals, a Letter of Good Standing endorses your ethics, relationships, and performance with professional bodies, clients, or your employer. You could add a Letter of Good Standing from a professional body like The American Bar Association or the American Association for Justice when applying for a seat on a nonprofit board. It proves that you’re a qualified, experienced specialist in your field and a worthy candidate for the board seat.

What Information Do You Include in a Letter of Good Standing?

For professionals, the Letter of Good Standing provides a detailed, personal account of the professional’s positive character traits, ethics, and business practices. For SMEs and small businesses, the letter endorses the company’s reliability in fulfilling its commitments to clients and its financial responsibility in settling accounts.

The issuing party drafts the letter in a formal manner on a company letterhead, discussing their professional or business relationship with you. The company name and issuers’ contact information, like their email address and phone number, must be included for easy reference and verification of the letters’ source.

How Do You Request a Letter of Good Standing?

What would you do if a colleague called you asking for a Letter of Good Standing? You’d likely be happy to grant their request and tell them you’ll send it to their inbox as soon as you get a chance. 

But despite your good intentions to endorse your colleague, work gets in the way and it takes a back seat to your priorities. Three weeks later you’ve yet to draft the letter and your colleague calls you to follow up. This time you feel frustrated and do your best to avoid them, hoping they’ll give up on chasing you.

What if they sent you a pre-made letter template with everything they want included? All that’s required from you is to read the letter, sign it, and send it back. That sounds a lot easier than drafting it from scratch, right?

Get a Letter of Good Standing Template from FreshDox

Visit FreshDox.com and register an account to access our Letter of Good Standing template and cover letter. You get a free 14-day trial of our platform, with complete access to our archive of hundreds of pre-designed templates for business owners, professionals, and students. 

With FreshDox you’ll never struggle with writing or formatting official documents, everything is pre-made for you and readily available for download in Word docx and PDF file formats. Our Letter of Good Standing sample template is ready to go, just download it and start editing it with your required information.

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