business operating that is not in good standing

Can a not for profit corporation that is not in good standing in the state conduct lawfully conduct business?

Only the appropriate authority or agency in the state of Ohio can answer your question.

I suggest you ask your state's Attorney General, or whatever agency administers/manages the type of business that puzzles you.
 
The answer to the narrowly worded question is YES. Not being in "good standing" just means you have potentially missed a filing or payment. It does not invalidate the corporation (be it non-profit or otherwise) for general operations, though it may have other implications.
 
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