A business that is in good standing has satisfied all of its state government and tax requirements. Maintaining good standing status is good business and will help protect personal assets from business liabilities.
Most people choose to form an LLC or incorporate their business in order to protect their personal assets. However, many do not understand that the act of forming a legal business structure does not mean that they are automatically protected. The business owner has to comply with the guidelines of the state in which the business is registered. This could mean annual filings with the State Corporation Commission, having a Registered Agent or completing other administrative functions to meet this requirement.
It is highly advisable to seek out guidance to fully understand and comply with these guidelines in order to maintain this status and protect your personal assets.