A Delaware certificate of good standing (DE) is a legal document that verifies that your limited liability company (LLC) or corporation was correctly formed and is in good standing with the state.
This Certificate of Good Standing Delaware guide will explain how to get a certificate of good standing in Delaware and the requirements to get a good standing certificate.
What is a Certificate of Good Standing?
The certificate- of good standing, aka “certificate of existence,” confirms that a company is up-to-date with its filings and has no legal issues preventing it from conducting business.
This state document verifies that you have legally formed your LLC or corporation and that your company is properly maintained.
Requirements for Getting a Delaware Certificate of Good Standing
The certificate of good standing is known as a certificate of compliance in many states. In Delaware, it is specifically called a certificate of status. To qualify for a Delaware certificate of compliance, make sure your corporation or LLC is up-to-date with the following state compliance requirements.
Obtain Business Licenses & Permits
Follow federal, state, and local licensing guidelines to operate your business in Delaware in a state-compliant manner. Some examples include health permits, building permits, medical and other professional licenses, etc.
To find more about state licensing requirements, visit the Delaware One Stop website.
Pay State Taxes
Different businesses are subjected to different taxes such as Delaware Unemployment Insurance (UI) tax, withholding tax, etc. Depending on your business activity, you must register for various forms of Delaware state tax.
Note: There is no state sales tax in Delaware. Rather, the state of Delaware levies a gross receipts tax on a business’s gross revenue.
All LLCs in Delaware must pay a $300 annual tax. The Delaware corporations must pay an annual franchise tax based on either their their assumed par value oe authorized shares.
Timely Submit Annual Reports
All Delaware corporations and LLCs must file an annual report that summarizes their business’s finances over the past year.
The Delaware Department of State requires your business to submit an annual report. The Delaware LLC annual report filing fee is $50 and is due on or before March 1 of each year.
How Do I Get a Certificate of Good Standing in Delaware?
Once your business is up-to-date with all filings and compliance requirements, you can order your certificate of Good Standing from the state authority.
The Delaware certificate of compliance is requested from the Delaware Department of State. To order your certificate of compliance online from the Delaware Department of State, click the following link.
You can also apply via mail by downloading the Delaware certificate of compliance using the following link:
Delaware Division of Corporations
401 Federal Street – Suite 4
Dover, DE 19901
The filing Cost for the Delaware Certificate of Compliance: $50 for short-form certificates, $175 for long-form certificates.
Why Do I Need a Certificate of Good Standing in Delaware?
While you don’t necessarily need a certificate of compliance to run your LLC or corporation in Delaware, there are several instances where you may need to get one. These include:
- Opening a business bank account
- Applying for a business loan or line of credit from a bank
- Purchasing business insurance
- Trying to lease commercial space
- Soliciting funds from potential investors
- You want to register your LLC or other business in another state as a foreign or out-of-state LLC
- You want to Transfer or domesticate your business to another state
- You’re selling your business, and the buyer wants proof that the company is in good legal standing
- You are contracting with another company
- You need to show compliance with government regulations in any other situation
FAQs on Delaware Certificate of Good Standing
Aisha Noreen is an owner of a small business with more than 9 years of experience in the marketing industry. With the wisdom of an old soul, she always seeks innovation and mind-blowing ROI techniques. Her unique approach helped many small businesses thrive and she can surprise you in many ways as well. Believe it or not, her energy, passion, and creativity are contagious enough to transform your business and take it to another level.