If you’re a business owner in Delaware, obtaining a certificate of authority may be necessary. This document serves as evidence that your company adheres to state regulations and taxes.
Additionally, having an established brand helps you secure better financing options and deals with banks and investors. Showing them that your company is serious about business is a huge benefit!
Company Name Reservation
Many entrepreneurs take a company name reservation before filing formation documents, guaranteeing their chosen business name is available for up to 120 days after filing your documents. This ensures the availability of the name you select during this critical period.
In most states, this process is straightforward and can be completed online through the state database. It’s essential to check for availability of your chosen business name as soon as possible since it could make all the difference when forming a new entity.
Delaware boasts some of the nation’s most business-friendly laws, making it a prime location to conduct business. However, be mindful that when an entity with a Delaware certificate of authority opens an office in another state, they must pay franchise taxes both there and its domestic home state.
Registered Agent
Most states require businesses incorporated within a given jurisdiction to designate a registered agent to receive service of process notices, government correspondence and important documents. This can be done through either an individual, corporation, LLC, partnership or business entity such as a law firm.
A registered agent’s primary responsibility is to receive notices from the state, but they also need to be accessible during business hours to answer any queries that the state may have regarding an entity. This could include information on taxes, forms, or other legal documents.
However, serving as a registered agent can be tricky and many people opt to hire an expert. This can be both a hassle and an expensive expense.
Filing Fees
Delaware certificate of authority is the official document that certifies your LLC’s formation. Depending on how you submit it, approval for your certificate can take anywhere from 10 business days to several weeks.
Fortunately, Delaware allows for expedited filings. You can pay an additional fee for faster service.
For example, you can obtain a physical, long-form DE CGS in as little as an hour for $1,175 or 21 days for $50 depending on the type of documentation needed and desired service.
Additionally, you may have to pay for additional documents or services necessary for the formation of your LLC. Some fees are one-time, while others are recurring.
Document Requirements
A Delaware certificate of authority is a document issued by the state that verifies your business status and ability to operate within that region. Without one, you could face legal repercussions as well as unpaid taxes. Obtaining one is essential if your company plans on conducting operations there; without one, there could be penalties and back taxes to contend with.
A certificate of authority, also referred to as a “Certificate of Good Standing,” is often required before you can hire employees or establish physical presence in a new state.
The certificate of authority, which typically contains your company’s name, formation date and address, should be filed with a government agency such as the Secretary of State and is an essential step in your company’s compliance process.
Your Delaware certificate of authority may also require that you designate a registered agent who can accept service of process on behalf of your company. This individual or business must be physically located in Delaware and maintain an address for mailing purposes.
