Delaware corporations and LLCs will inevitably require a certificate of good standing from the Division of Corporations at some point, to prove they’re active and in accordance with state law.
Short and long form certificates provide evidence of on-time franchise tax payments; respectively. Long form certificates contain additional legal history information; these can be used to open corporate bank accounts, secure loans and conduct commercial transactions.
What is a certificate of good standing?
Certificates of Good Standing issued by the Delaware Secretary of State Division of Corporations provide evidence of your company or corporation being up-to-date with franchise taxes, have their annual report filed, and operate legally. They can help open bank accounts, sell real estate or secure loans.
Businesses required to register with their state can request this document, such as corporations and limited liability companies. Some states also mandate registration for professional corporations and partnerships.
A certificate of good standing costs $50 for short-form certificates or $175 for those including copies of compliance documents, and can be requested online, via mail, fax or hand delivery. Regardless of which form is selected, it must include your signature as well as daytime telephone contact numbers so the state may reach out in case any inquiries arise about compliance matters.
How do I get a certificate of good standing?
Certificates of good standing provide proof that your business exists and complies with state law, which can help when applying for loans, credit cards and other financial services. Having such documents demonstrates your legitimacy as an owner who pays their taxes and follows state regulations.
Ordering your certificate of good standing online from Delaware is quick and easy; simply provide your company name, type of business activity and date of incorporation. Expedited processing options also are available if you need it quickly.
Certificates of good standing will typically state that your business is up-to-date on franchise taxes and annual reports, if applicable. They also display the state seal and signature from an issuing agency like the Secretary of State; usually valid for 30-to-60 days so should be renewed regularly.
What is the fee for a certificate of good standing?
Certificates of good standing (also referred to as letters or certificates of status) provide verification from states that businesses comply with state laws and are allowed to operate legally in them. Certain states use such documents for tax compliance verification or as proof of their legal existence.
CGSs are often necessary when opening corporate bank accounts, buying real estate or applying for government funding. Furthermore, they can prove that your company does not owe franchise taxes or annual reports, both of which could potentially have serious ramifications for doing business.
Requests can be submitted online, by mail or fax – make sure that your request includes the entity name, file number and daytime phone number so it can be properly processed. If urgent processing is required for faster turnaround times; expedited fees start from $60 for long form CGS requests that require expedited handling (normal processing takes around 175 business days for full form CGSs and $175 if expedited is desired).
How long does it take to get a certificate of good standing?
Certificates of Good Standing (CGSs) are legal documents which verify your corporation or LLC is up-to-date on its franchise taxes, which is often necessary when opening bank accounts, borrowing money or purchasing property. CGSs may also help when applying for government funding or contracts.
There are two forms of Certified General Subcontracts (CGSs). The short form merely verifies that franchise taxes have been paid and annual reports filed, while the longer form provides more detailed records since incorporation of your company.
Requesting a certificate of good standing can take between one to several hours to several weeks depending on its urgency and any priority processing fees that might apply. Once issued, however, certificates are only valid for up to 30-60 days before you must request another one.
