A certificate of good standing (CGS) is a legal document that certifies your compliance with state laws and taxes in Delaware. It serves to bolster your credibility when engaging in commercial endeavors.
Delaware companies that do business in the state must obtain a CGS at some point. It’s an essential piece of paperwork for anyone wanting to operate there legally.
What is a CGS?
A Certificate of Good Standing Delaware (CGS) is a legal document that businesses can utilize to confirm their status with the state of Delaware. It may be used for various reasons, such as opening corporate bank accounts, purchasing real estate, taking out a loan, and registering to operate in another jurisdiction.
A CGS is a certified document issued by the Secretary of State that verifies your corporation or LLC’s good standing as of a certain date. It confirms that your business has filed all required reports and paid all applicable fees.
This document is typically valid for one to two months after production and signing, making it invaluable in assuring your business remains current on taxes – particularly franchise taxes and annual report filings.
The certificate can also be beneficial when applying for a loan, signing up for insurance, or receiving government funding or contracts. It’s an effective way to demonstrate that your company abides by state regulations which could lead to better rates or deals.
How do I get one?
A Certificate of Good Standing (CGS) is a document issued by the Delaware Secretary of State that verifies your business is in good standing. This document serves to confirm compliance with state regulations and taxes.
It is usually necessary for opening bank accounts, obtaining financing, forming partnerships, landing contracts and renewing licenses. Furthermore, it may be required if you plan to expand into another state or merge with an existing business.
Your company’s registration certificate is a one-page document that contains your company’s name, date of formation and other pertinent details. It can be found in both short and long forms on the Secretary of State website.
A certificate of good standing is proof that a corporation, LLC or limited partnership is up-to-date with franchise taxes and has filed annual reports. It’s an essential piece of business compliance documentation for any Delaware business.
What is the cost?
A Delaware certificate of good standing (CGS) is a document that verifies your business is in good standing with the state. This can translate to better loan rates, more lucrative deals, and other advantages.
The CGS (Compliance Guarantee Statement) issued by the Secretary of State can verify that your business is complying with state laws and taxes. It’s invaluable when applying for a business loan, registering for insurance, opening bank accounts or securing government funding.
Short and long versions of the certificate exist. The shorter form confirms your LLC or corporation is up-to-date with franchise taxes and has filed its annual reports.
A lengthy form will list documents filed since your company’s incorporation, providing a chronological account of its legal history and structure.
What is the deadline for getting one?
If your business is a Delaware corporation or LLC, the Division of Corporations at the Secretary of State Office may require that you obtain a Certificate of Good Standing (CGS). This document certifies that your enterprise is operating legally and meeting all statutory obligations such as paying taxes and filing annual reports.
The CGS is a straightforward one-page form that certifies your company is in good standing and has filed all required reports and paid any applicable fees. Signed by the Delaware Secretary of State, this document includes an official seal and stamp for official validation.
Corporations and limited liability companies that are current on franchise taxes, have filed annual reports, and possess all required licenses and permits can receive this document. It’s often requested when applying for a loan or line of credit in Delaware or to guarantee their business operations adhere to local, state, and federal laws.
