There are several reasons why you may need to quickly acquire a Certificate of Good Standing or CGS as we commonly call it. It can be unsettling to discover your company is not in good standing, but do not worry. At Harvard Business Services, Inc., we are accustomed to assisting clients in this situation and many others. We have provided some examples below as to why you may need a CGS.
As a Delaware corporation, you have an annual maintenance fee due each year to the State of Delaware called Franchise Tax. The Franchise Tax is often accompanied by an annual report and is due each year by March 1st. The fee is paid in arrears like your federal tax filing. The Annual Report filing can sound daunting, but in fact, it is simple form. Your Annual Report filing requires general information about the company such as its principal place of business, and the names of its directors/officers. If it is a maximum stock entity, the figures for the year which include your issued shares and gross assets are also required. If the Franchise Tax and Annual Report are not submitted to the State of Delaware by March 1, the state will apply a late fee of $200 and interest of 1.5% on March 2. When this requirement is not met, the company becomes delinquent with the State of Delaware, and is prohibited from obtaining a CGS. We understand payments can slip through the cracks, and if your company does become delinquent with the State of Delaware, Harvard Business Services, Inc. can assist you in getting your company back in good standing!
Two ways you can satisfy the payment are:
Unfortunately, we are unable to accept payments over the phone for Corporation franchise tax filings since the Annual Report information must be filled out at the time of payment.
After the tax has been posted by the State of Delaware, we will email a receipt and the company will be back in Good Standing with Delaware within three to four business days. Expedited processing is available if needed. We are always happy to expedite the process, if requested.
If your company surpasses the “delinquent” period and goes VOID in Delaware, a Certificate of Renewal will need to be filed with the Secretary of State along with paying any past due Franchise Tax and Annual Report filings.
To initiate a Revival filing, you may either send an email to our filings team at firstname.lastname@example.org, or you may call our office and a specialist would be happy to take the Renewal order over the phone and answer any questions.
Once the order is placed, we create the necessary documentation for filing and send the documents electronically for signature within one to two business days. After the documents are reviewed, completed, and signed, they are automatically returned to us for filing through our e-signature program. The typical turnaround time for State approval is four to five business days from the date of payment, although expedited options are available at an additional cost. The State sends us the approved date-stamped Certificate of Renewal, and we forward the documents to the email provided when the order was placed. Delaware’s documents are released in black and white, so they can be sent electronically.
Once the Renewal is approved you can effortlessly order a Certificate of Good Standing using this link:(https://www.delawareinc.com/ourservices/delaware-certificate-of-good-standing/). The website offers several different turnaround times and costs to accommodate all needs.
At Harvard Business Services, Inc. we recognize the challenge of keeping up with all corporate filings and requirements, especially during a global pandemic and we are here to support our clients in any way possible.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such sourceâ€™s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.