What is a Delaware Certificate of Good Standing?
What is a Delaware Certificate of Good Standing? A Delaware Certificate of Good Standing is a document provided by the Delaware Division of Corporations that declares that the company is in good standing with the State of Delaware. “Good Standing” means that the business entity, your business entity, has not been terminated either voluntarily or involuntarily. Your business could lose good standing if you fail to pay your taxes or declare yourself as a foreign entity in the state you operate.
A Certificate of Good Standing is typically needed to open a corporate bank account, obtain a bank loan for your business, requesting a Certificate of Authority if you’re a foreign entity, or if you purchase any real-estate under the umbrella of your corporation.
You will know if you need a Certificate of Good Standing because you will be asked to provide it for certain legal documents. However, you should be mindful that you should only obtain one when you actually need it. Unlike other business documents, Certificates of Good Standing are time sensitive. Certificates are typically only valid for 30-60 days beyond the issue date. That means that if you are beyond the 60 day mark, you may need to request another one.
A Certificate of Good Standing can be obtained from the Division of Corporations in two formats: Short Form and Long Form. The short form certificate simply states that Delaware legally recognizes your entity and that you are current on your corporate or franchise taxes. The long form version states the same thing as the short form version, but it also lists all of the documents that you have submitted to the state of Delaware.
Obtaining a Certificate of Good Standing
A Certificate of Good Standing can be obtained by submitting a request to the Division of Corporations. However, be careful about knowing what you are requesting. The Division of Revenue does offer the ability to check a corporation’s status online for $10 but that’s all that is, a check of status. If you want the actual certificate, you can obtain a short-from certificate for $50.00 or a long-form certificate for $175.00. If you are in a hurry, you can expedite the request for an additional $50-$80 depending on the format. Keep in mind, that you will need to use Delaware’s Certification Request Memo or your corporate letterhead to formally request your certificate. You can check the fees for Good Standing Certificates and other document requests from the Division of Corporation on their website.