A Delaware Certificate of Good Standing is a one-page document issued by the Secretary of State that verifies a company’s legal status. When there is no outstanding Delaware franchise tax, the Secretary of State will issue one (or annual reports, in the case of a corporation). This document will be referred to as a “Authority to Conduct Business” in several other states. It is normally sent the same day it is purchased through email by the state. The Delaware Secretary of State’s office issues it as a certified document. It certifies that your corporation or LLC has complied with all legal requirements (filed all reports and paid all fees) and is legally permitted to conduct business.
Delaware Certificate of Good Standing
The Delaware certificate of good standing is a proof-of-existence document. It simply implies that your company, whether an LLC or a corporation, has paid all of its taxes and dues in the state of Delaware as of the present date. The Delaware Secretary of State signs the document, which declares that your firm is in good standing or active status in the state on the day it was signed. This document is also known as a certificate of existence in various states, and it is also known as a certificate of status in Delaware.
What is the Delaware certificate of good standing?
There are various factors to consider whether you are starting a new business in Delaware or a foreign corporation looking to extend your operations in Delaware. One of the most important things you can do is make sure your firm has an “active” Delaware business status, which you may do by acquiring a certificate of good standing. The Delaware Certificate of Good Standing, also known as a Certificate of Existence, is a document issued by the Delaware Secretary of State that certifies that a business is in good standing with the state. It specifies a corporation or LLC’s incorporation date, good standing status, and whether or not its taxes are current.
Why do you need a certificate of good standing in Delaware?
A Certificate of Good Standing may be necessary to create a corporate bank account, buy or sell real estate, get a loan, get a Certificate of Authority to operate in another state, or merge with another corporation. Authorities will often accept the certified document as proof that the business is valid for 30-60 days after the issue date because it validates that the company is in good standing on the date it was issued. However, if that timeframe has passed, a new Certificate of Good Standing may be required. Because the Certificate is time-sensitive, it’s best to order one when you’ll need it. We can secure a Certificate for you in as short as two hours if necessary. Only companies in good standing with the state of Delaware are eligible to receive this certificate. If your business owes Delaware Franchise Taxes, we can help.
What business entities can obtain a Delaware certificate of good standing?
A Certificate of Good Standing is available to businesses that have registered with the Delaware Secretary of State. Corporations, LLCs, LLPs, limited partnerships, and other state-registered formations are among them. If you own a Delaware corporation or limited liability company (LLC), you may need a Certificate of Good Standing (CGS) from the Delaware Secretary of State’s Division of Corporations at some point. It’s confirmation that your company is open for business and following state regulations. We’ll go over some scenarios when you could require this, as well as how to get it. But it’s not just about adhering to the rules. In some states, the CGS (also known as a Certificate of Existence or Status) is proof that your business exists. It’s essentially a “business passport” for LLCs and corporations, and it comes with a slew of advantages for developing companies.
Obtaining Delaware Certificate of Good Standing
The document is necessary for a number of critical business functions. A CGS is required if you want to grow into other states. Opening business bank accounts, acquiring finance, forming partnerships, landing contracts, and renewing permits may all require your CGS.
How to get a certificate of good standing in Delaware?
To begin, you must undertake the necessary checks to determine whether or not your company is in compliance. If there are any outstanding tax payments, the state will not issue a CGS. In addition, if a company or LLC has not filed its Delaware annual report, the state will not issue a CGS. It’s time to submit the legal documents once you’ve verified that you’re in compliance. To obtain the records, go to Delaware’s Division of Corporations at 401 Federal Street in Dover, Delaware.
Alternately you can downloaded the forms through the online portal on the Delaware Division of Corporation website and filled out the form, mail it to the Delaware Division of Corporation address, along with your payment. Make your check payable to the Delaware Secretary of State. Unless you supply the state with a FedEx or UPS account number, your request will be sent first class mail.
When filling out your form, keep in mind that it must be accurate. Your certificate must be valid for the purpose for which it was issued. Your document will be mailed back to you, complete with the Delaware Secretary of State’s printed great seal. Your business identity number and verification code are printed on the certificate, which can be viewed on the state’s official website.
Steps to obtain Delaware certificate
- On the Web – Corporate Status (This application will reflect the status of an entity but will not generate an official certificate of good standing) For a cost of $10.00 per entity for status or $20.00 per entity for more extensive information such as current franchise tax assessment, current filing history, and more, you can check corporate/entity status on the web. You can use a Visa, MasterCard, or Discover card to make the payment. On our website, you can check the status.
- Certified Certificate of Status – You can order a Certificate of Status or a Certificate of Good Standing from the Division of Corporations by submitting a written request. A short-form certificate of status (which includes the entity’s name and status at the time the certificate is issued) costs $50.00, whereas a Long Form certificate of Good Standing costs $175.00. ( states all documents that have been filed, including the dates and times and any name changes that occurred along with the status at the time the certificate is issued ).
How much does a Delaware certificate of good standing cost?
For both foreign (out-of-state) and domestic organizations, the CGS short form costs $50. The long-form is $175 for both international and domestic organizations. A timeline of filed documents is included in the long-form version. It costs an extra $50 for additional certificates, such as mergers and name changes. For $10 or $20, you can get an unofficial business status report.
Get Your Delaware Certificate of Good Standing!
Maintaining compliance can be a challenge. There is a lot of paperwork, administrative, and on-the-ground business concerns in the first year of the company. Having a knowledgeable partner, such as IncParadise, taking care of your business compliance is beneficial. We maintain track of warnings and notifications as part of our worry-free compliance package, so you can focus on your business. We can assist you with annual report deadlines, modifications, and additional files, as well as alerts and notifications, with our worry-free compliance solution.