diff --git a/src/engine/gameManager/GuildManager.java b/src/engine/gameManager/GuildManager.java
index 499450ad..1f025224 100644
--- a/src/engine/gameManager/GuildManager.java
+++ b/src/engine/gameManager/GuildManager.java
@@ -186,8 +186,13 @@ public enum GuildManager {
         if (guild.getNation() == null)
             return mbEnums.GuildState.Errant;
 
-        if (guild.getNation() == guild)
-            return guild.getSubGuildList().isEmpty() ? mbEnums.GuildState.Sovereign : mbEnums.GuildState.Nation;
+        if (guild.getNation() == guild) {
+            // Check if any subguild in the list has an owned city
+            boolean hasCityOwningSubguild = guild.getSubGuildList().stream()
+                    .anyMatch(subGuild -> subGuild.getOwnedCity() != null);
+
+            return hasCityOwningSubguild ? mbEnums.GuildState.Nation : mbEnums.GuildState.Sovereign;
+        }
 
         if (guild.getOwnedCity() == null)
             return mbEnums.GuildState.Sworn;