How to Obtain a Delaware Entity Status Certificate
In previous blogs, we’ve discussed the importance of and reasons why clients often need a Delaware Certificate of Good Standing. That’s the standard document most businesses request to show their company is active, compliant, and in good standing with the Delaware Division of Corporations.
But every now and then, a client may need the opposite: proof that shows their company is no longer in Good Standing. Perhaps you didn’t file a Certificate of Cancellation or Dissolution for your Delaware company and now need state-issued confirmation that the entity is inactive or non-compliant. While rare, this is when a Delaware Entity Status Certificate becomes valuable. At Harvard Business Services, Inc. (HBS), we can assist you in checking your Delaware company status and obtaining this uncommon certificate when the situation calls for it.
As mentioned, the more common request HBS receives is for a Certificate of Good Standing. It lists that the company is up-to-date as it pertains to the Delaware Franchise Tax, is in compliance with the Delaware Division of Corporations, and is currently active. But sometimes, there are situations where proof of non-compliance or inactive status is necessary.
You may be wondering why you might need this type of certificate, so below are some examples of instances where the Entity Status Certificate may be required:
- Closing financial accounts: A bank may require proof that your company is no longer active if you didn’t formally close the company with Delaware.
- Business partners: Another company or individual may request documentation confirming your entity is not in compliance to finalize or exit a deal.
- Legal matters: The company may be involved in a legal dispute that requires the Entity Status Certificate to be provided. Attorneys may need proof that an entity is inactive or not in good standing for use in litigation.
- Financial settlements or regulations: There may be financial settlements or other regulatory processes that may request official documentation confirming a company’s current status, even if the company is not in good standing.
- Creditors: A creditor may request this certificate when collecting debts for proof that the entity has forfeited its right to operate.
- Government Agencies: Sometimes, government agencies may require evidence that a company is inactive or delinquent in its domestic state of incorporation before approving other specific actions.
- Internal record-keeping: Other times, clients simply request the document to maintain accurate historical records for their company.
Think of it as a snapshot of your company’s standing with the Delaware Division of Corporations at a specific moment in time. Instead of confirming good standing, it verifies that the company is not compliant, inactive, or forfeited. Although not commonly requested, it serves as an official state-issued document that can save time and provide clarity in important legal, financial, or compliance situations.
Just as HBS routinely helps clients obtain Delaware Certificates of Good Standing, HBS can also assist with ordering an Entity Status Certificate quickly and securely. Our team works directly with the Delaware Division of Corporations, so you don’t have to navigate the process yourself.
If you think you may need a Delaware Entity Status Certificate, or if you’re unsure which document is right for your situation, contact our team today at 1-302-645-7400 or 1-800-345-2677 ext. 6911 or via email at info@delawareinc.com.
*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 source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.