How to Get a Certificate of Good Standing in Delaware | A Comprehensive Guide

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Obtain a Certificate of Good Standing in Delaware

If you want to start an LLC in Delaware, you should be aware that you need a Certificate of Good Standing to operate. A Certificate of Good Standing is one important document you’ll want in such situations. It is an official document issued by the Delaware Secretary of State’s office. It proves that a business entity is duly registered, authorized to transact business, and compliant with all state regulations and requirements. This certificate is essential for businesses in various situations, such as opening a bank account, obtaining financing, registering a foreign entity to do business in Delaware, and engaging in business transactions. 

In this article, Webinarcare Editorial Team will provide an in-depth guide on Getting a Certificate of Good Standing in Delaware, outlining its eligibility requirements, the application process, usage, and frequently asked questions. You must be guided by all the factors gathered in this article.

How to Get a Certificate of Good Standing in Delaware

What is a Certificate of Good Standing?

A Certificate of Good Standing is a document issued by the Secretary of State’s office in a specific state, such as Delaware. This certificate confirms that the corporation, LLC, or other business entity is legally registered and authorized to conduct business within the state. It also verifies that the entity has complied with all state requirements, such as filing Annual Reports and paying necessary fees. The Certificate of Good Standing is often required when you start a business or qualify to register a Foreign LLC in Delaware.

Acquiring a Certificate of Good Standing in Delaware is a crucial step in your journey after starting an LLC in Delaware. It’s your badge of authenticity that validates your commitment and legal standing in the world of business.

– WEBINARCARE EDITORIAL TEAM

How to Get a Certificate of Good Standing in Delaware

In obtaining the Certificate of Good Standing in Delaware, there are things that you should consider, including getting and submitting the form, paying for the filing fee, and receiving the Certificate of Good Standing.

Step 1: Get and Submit the Form

The first thing you need to do is get the form and submit the form for your Certificate of Good Standing. The form is available on the Delaware Secretary of State website. You can download the form and mail it or submit it online. 

Online Application Process:

  1. Visit the Delaware Secretary of State website: In Delaware, you can visit the Delaware Secretary of State which offer an online portal for business services that includes the option to request a Certificate of Good Standing.
  2. Register an account: You may need to create an account or log in to your existing account to access the application process.
  3. Provide required information and documentation: The online application typically requires basic information about your business, such as the entity name, identification number, and business type. You may also need to upload supporting documents. 

Paper Application Process:

  1. Download and complete the appropriate forms: Visit the Delaware Secretary of State website to download the required application forms for a Certificate of Good Standing. Complete the forms, ensuring all information is accurate and up-to-date.
  2. Provide required documentation: In Delaware, you may need to include copies of your registration documents, Certificate of Formation, annual reports, or other supporting materials.
  3. Mail or deliver the application: Once you have completed the forms and gathered the necessary documents, mail or deliver the application package to the Delaware Division of Corporations, 401 Federal Street, Suite 4 Dover, DE 19901, along with the required fees.

Step 2: Filing Fee and Processing Time

The fees for obtaining a Certificate of Good Standing cost around $50 (domestic) or $100 (foreign). Check the Delaware Secretary of State website for the most up-to-date fee schedule. However, the Certificate of Good Standing’s processing time varies from state to state. It can take a few days to a few months to obtain the Certificate of Good Standing in Delaware.

Step 3: Receive the Certificate of Good Standing

Your forms begin processing once the form and the required filing fee are submitted. The procedure might take a long time. You can inquire with the Delaware Secretary of State whether they provide expedited filing; the document may take many months to arrive.

Eligibility Requirements for Delaware Certificate of Good Standing

To obtain a Certificate of Good Standing, a business entity must meet specific eligibility requirements. These requirements vary depending on the type of business entity type and compliance with Delaware regulations.

Entity Types

The following entity types can obtain a Certificate of Good Standing in Delaware:

Corporations

A corporation is a legal entity that is separate and distinct from its owners, known as shareholders. It is created under a state’s laws and given certain rights, privileges, and liabilities. The formation and operation of a corporation are governed by corporate law, which varies depending on the jurisdiction where the corporation is established. Corporations can be classified as S-Corporation, C-Corporation, and Non-profit Corporations.

Limited Liability Companies (LLCs)

An LLC, or Limited Liability Company, is a type of business structure that combines the flexibility and simplicity of a partnership with the limited liability protection of a corporation. If you plan to form an LLC, we provide the Best LLC Services for your business.

Non-Profit Organizations

A non-profit organization (NPO) is a type of organization that operates for a purpose other than generating profit for its owners or shareholders. Instead, the primary objective of a non-profit is to serve the public interest or support a particular social, educational, religious, or charitable cause. 

Limited Partnerships (LPs)

A Limited Partnership (LP) is a type of business structure comprising two or more partners with different levels of liability and involvement in business management. There are two types of partners in a limited partnership:

  • General Partners: These partners have unlimited personal liability for the debts and obligations of the partnership, and they are responsible for managing the business’s day-to-day operations. 
  • Limited Partners: These partners have limited liability, meaning their personal assets are generally protected, and their financial responsibility is limited to their investment in the partnership. 

Compliance with State Regulations

A business must be in good standing with the Delaware Secretary of State’s office. This means that the entity has complied with all state regulations and requirements, including:

  • Submitting annual reports and fees on time
  • Having the necessary licenses and permits to operate in Delaware
  • Maintaining a Registered Agent with a physical address in Delaware.

If you want to hire a Registered Agent for your LLC, you should know more about Delaware Registered Agent Services.

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Using Delaware Certificate of Good Standing

Delaware Certificate of Good Standing is an essential document for businesses in various situations, such as:

  • Business Transactions: When entering into contracts, partnerships, or other transactions, other parties may require proof that your business is in good standing with the state. A Certificate of Good Standing serves as this verification.
  • Opening a Bank Account: Financial institutions often require a Certificate of Good Standing to open a business bank account or line of credit. Opening a bank account for your Delaware business is essential for maintaining a clear separation between your personal and business finances. This separation helps preserve the limited liability protection offered by the LLC structure. You can check out the Best Banks in Delaware, which offers the best fees, services, and convenience for your business needs.
  • Registering a Foreign Entity to Do Business in Delaware: If your business is registered in another state but wishes to operate in Delaware, you may need to provide a Certificate of Good Standing from your home state as part of the registration process. Aside from that, you also need to hire a Registered Agent to file for your Certificate of Good Standing in the Delaware Secretary of State office.
  • Obtaining Financing or Loans: Lenders may require a Certificate of Good Standing to verify that your business is in good standing before approving financing or loans. You can check out the Best Small Business Loans for your Delaware business.

It is essential to note that depending on the state, a Certificate of Good Standing has a limited validity period, usually between six months and one year. As a result, businesses should ensure they keep their Certificate of Good Standing up-to-date by renewing or updating it as necessary.

Difference Between a Certificate of Status, Certificate of Good Standing, and Certificate of Existence

While the terms may vary by state, they generally refer to the same document. A Certificate of Status, Good Standing, or Existence proves that a business is authorized to transact in the state and has complied with all state regulations and requirements.

How Long Does it Take to Obtain a Certificate of Good Standing?

The processing time for a Certificate of Good Standing can vary depending on the state and the application method. Online applications are typically processed more quickly, often within a few business days. Paper applications may take longer, with processing times ranging from one week to several weeks.

Can I Transfer a Certificate of Good Standing From One State To Another?

A Certificate of Good Standing  is specific to the state in which it is issued. If you are registering a foreign entity to do business in Delaware, you will need to obtain a Certificate of Good Standing  from your home state, in addition to meeting any other registration requirements in Delaware.

Consequences of Not Having a Valid Certificate of Good Standing

Operating a business without a valid Certificate of Good Standing  can have serious consequences, such as fines, penalties, and even the suspension or revocation of your business’s authorization to operate. Additionally, you may need help when attempting to engage in business transactions, open bank accounts, or obtain financing.

FAQs

What is a Certificate of Good Standing in Delaware?
A Certificate of Good Standing in Delaware confirms that a corporation or LLC is current with all of the state’s filing requirements and is authorized to conduct business within the state.
How do I obtain a Certificate of Good Standing in Delaware?
To obtain a Certificate of Good Standing in Delaware, you must request one from the Delaware Secretary of State.
What is the fee to obtain a Delaware Certificate of Good Standing?
The fee to obtain a Delaware Certificate of Good Standing varies depending on the type of business entity and the filing method. It can range from $10 to $70.
Is it possible to expedite the process of obtaining a Delaware Certificate of Good Standing?
Yes, it is possible to expedite the process of obtaining a Delaware Certificate of Good Standing for an additional fee.
How long does it take to get a Delaware Certificate of Good Standing?
The processing time for a Delaware Certificate of Good Standing can vary, but typically it takes around 5 to 7 business days to receive it.
Is it necessary to have a Certificate of Good Standing in Delaware if your business is not located in the state?
No, it is not necessary to have a Certificate of Good Standing in Delaware if your business is not located in the state. However, if you plan to conduct business in Delaware, it is required.
Can a non-corporate entity get a Certificate of Good Standing in Delaware?
A non-corporate entity, such as a sole proprietor or partnership, cannot get a Certificate of Good Standing in Delaware because these entities are not registered with the state.
How long is a Delaware Certificate of Good Standing valid?
A Delaware Certificate of Good Standing is valid for one year from the date of issuance.
Can I request a Delaware Certificate of Good Standing online?
Yes, you can request a Delaware Certificate of Good Standing online through the Delaware Secretary of State’s website.
Can I get a Delaware Certificate of Good Standing in person?
Yes, you can get a Delaware Certificate of Good Standing in person at the Delaware Secretary of State’s office located in Dover, Delaware.
How do I know if I’m eligible to receive a Delaware Certificate of Good Standing?
You’re eligible to receive a Delaware Certificate of Good Standing if your business is up-to-date with all of its taxes, licenses, and filings.
Are there any other state requirements I need to meet before I can obtain a Delaware Certificate of Good Standing?
No, there are no other state requirements you need to meet before you can obtain a Delaware Certificate of Good Standing.
Can a law firm request a Delaware Certificate of Good Standing on behalf of a client?
Yes, a law firm can request a Delaware Certificate of Good Standing on behalf of a client.
How do I know if my business is in good standing with Delaware?
You can find out the status of your business with the Delaware Secretary of State’s office. If your business is in good standing, the state will issue you a Certificate of Good Standing.
Can I get a copy of my Delaware Certificate of Good Standing if I lose it?
Yes, you can request a copy of your Delaware Certificate of Good Standing from the Delaware Secretary of State’s website.
Do I need a Delaware Certificate of Good Standing to open a business bank account?
It depends on the bank, but most banks require a Delaware Certificate of Good Standing to open a business bank account.
Can I use a Delaware Certificate of Good Standing to register my business in another state?
Yes, you can use a Delaware Certificate of Good Standing to register your business in another state.
What should I do if the information on my Delaware Certificate of Good Standing is incorrect?
If the information on your Delaware Certificate of Good Standing is incorrect, you should contact the Delaware Secretary of State’s office to request a correction.
What is the difference between a Delaware Certificate of Good Standing and a Certificate of Formation?
A Delaware Certificate of Good Standing confirms that a business is up-to-date with all of its filings and authorized to conduct business within the state. A Certificate of Formation is the document used to form a corporation or LLC in Delaware.
Can I get a Delaware Certificate of Good Standing if my business is not in good standing?
No, you cannot get a Delaware Certificate of Good Standing if your business is not in good standing with the state.
Does a Delaware Certificate of Good Standing expire?
Yes, a Delaware Certificate of Good Standing expires one year from the date of issuance.
How can I pay for my Delaware Certificate of Good Standing?
You can pay for your Delaware Certificate of Good Standing through the Delaware Secretary of State’s website with a credit card.
Can I get a Delaware Certificate of Good Standing for a nonprofit organization?
Yes, you can obtain a Delaware Certificate of Good Standing for a nonprofit organization.
Can I submit a request for a Delaware Certificate of Good Standing on weekends?
You can submit a request for a Delaware Certificate of Good Standing on weekends, but it will not be processed until the next available business day.
How can I verify a Delaware Certificate of Good Standing?
You can verify a Delaware Certificate of Good Standing on the Delaware Secretary of State’s website.
Do I need to be a Delaware resident to get a Delaware Certificate of Good Standing?
No, you do not need to be a Delaware resident to obtain a Delaware Certificate of Good Standing.
Is a Delaware Certificate of Good Standing required to renew a business license?
In some cases, a Delaware Certificate of Good Standing may be required to renew a business license.
What should I do if my request for a Delaware Certificate of Good Standing is denied?
If your request for a Delaware Certificate of Good Standing is denied, you should contact the Delaware Secretary of State’s office for further assistance.
How can I get a Delaware Certificate of Good Standing if my business has been dissolved?
If your business has been dissolved, you will need to contact the Delaware Secretary of State’s office to reinstate the business before you can obtain a Certificate of Good Standing.
Who can request a Certificate of Good Standing in Delaware?
Any person or entity can request a Certificate of Good Standing in Delaware for a business, including the business itself or its authorized agent.
How can I request a Certificate of Good Standing in Delaware?
You can request a Delaware Certificate of Good Standing online through the Delaware Secretary of State website, by mail using the appropriate form, or in person at the Delaware Secretary of State’s office in Dover.
What information is required to request a Certificate of Good Standing in Delaware?
To request a Delaware Certificate of Good Standing, you’ll need the business’s legal name, entity type, identifier number, and payment information for any applicable fees.
How much does a Delaware Certificate of Good Standing cost?
The cost for a Delaware Certificate of Good Standing varies depending on how it’s requested and how quickly it’s needed, but prices typically range from $50 to $200.
What’s the quickest way to get a Delaware Certificate of Good Standing?
The fastest way to obtain a Delaware Certificate of Good Standing is by requesting it online and paying for expedited processing.
Can I get a Delaware Certificate of Good Standing the same day I request it?
It’s possible to get a Delaware Certificate of Good Standing the same day you request it if you submit your request in person at the Secretary of State’s office in Dover and pay for expedited processing.
Do I need a Delaware Certificate of Good Standing for every state in which I do business?
Most states require businesses to have a Certificate of Good Standing or similar document from their state of incorporation or formation in order to do business there, so you may need a Delaware Certificate of Good Standing to obtain a license or register to do business in another state.
What happens if my business is not in Good Standing in Delaware?
If your business is not in Good Standing in Delaware, it means you owe fees, taxes, or other debts to the state and may be subject to penalties or legal action.
How can I get my business back in Good Standing in Delaware?
To get your business back in Good Standing in Delaware, you’ll need to resolve any outstanding debts or obligations with the state and may need to file a reinstatement or other paperwork with the Delaware Secretary of State’s office.
Can I request a Delaware Certificate of Good Standing if my business is not in Good Standing?
No, you cannot obtain a Delaware Certificate of Good Standing if your business is not in Good Standing in Delaware.
Can I re-order a Delaware Certificate of Good Standing if I lose it?
Yes, you can request a replacement Delaware Certificate of Good Standing if you lose the original, but you’ll need to pay any applicable fees again.
Why do I need a Delaware Certificate of Good Standing?
A Delaware Certificate of Good Standing is often required by banks, lenders, and other entities that do business with your company to verify its legal existence and good standing with the state.
What information is included in a Delaware Certificate of Good Standing?
A Delaware Certificate of Good Standing typically includes the business’s name, address, date of formation, and confirmation of its good standing with the state.
Is a Delaware Certificate of Good Standing the same as a Delaware Certificate of Existence?
Yes, a Delaware Certificate of Good Standing is essentially the same thing as a Delaware Certificate of Existence or status.
Can I request a rush delivery for my Delaware Certificate of Good Standing?
Yes, you can pay an extra fee to expedite the processing and delivery of your Delaware Certificate of Good Standing.
Can I download a Delaware Certificate of Good Standing online?
No, Delaware Certificates of Good Standing are typically mailed or delivered through the Secretary of State’s online portal.
Can I submit a Delaware Certificate of Good Standing request on behalf of someone else?
Yes, you can request a Delaware Certificate of Good Standing on behalf of a business, but you must have authorization from the business or its legal representative.
Is a scanned copy of a Delaware Certificate of Good Standing acceptable for most purposes?
Yes, scanned copies of Delaware Certificates of Good Standing are often accepted by banks, government agencies, and other organizations as proof of a company’s registration and good standing with the state.
Can I get a Delaware Certificate of Good Standing for a business entity other than a corporation?
Yes, you can obtain a Delaware Certificate of Good Standing for any business entity registered with the state, including LLCs and partnerships.
Do I need a Delaware Certificate of Good Standing for my nonprofit organization?
Nonprofit organizations typically do not need a Delaware Certificate of Good Standing, but may be required to provide other documentation to verify their status as a tax-exempt organization.
Is a Delaware Certificate of Good Standing the same thing as a business license?
No, a Delaware Certificate of Good Standing verifies a business’s registration and legal existence with the state, while a business license is issued by a local government and authorizes a business to operate within a specific jurisdiction.
Can I request a Delaware Certificate of Good Standing in person at a Delaware DMV office?
No, Delaware Certificates of Good Standing can only be obtained through the Secretary of State’s office in Dover or online through their website.
Can I request a Delaware Certificate of Good Standing if I don’t have the business’s entity number?
No, you must have the business entity number or Social Security number assigned to the business in order to request a Delaware Certificate of Good Standing.

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Conclusion

A Certificate of Good Standing in Delaware is an essential document for businesses operating within the state. Ensuring that your business remains in good standing with the state by complying with all regulations and requirements and keeping your Certificate of Good Standing  up-to-date is crucial. Suppose you need assistance obtaining a Certificate of Good Standing  or have questions about the process. In that case, it is best to consult with the Delaware Secretary of State office or seek legal advice from a professional familiar with your state’s business laws.

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