Sometimes, after forming a Delaware company, clients might begin the process of opening a business bank account, plan to buy or sell real estate within the company, or inquire about obtaining a loan for financing for the company. Or perhaps, clients will begin working on an agreement with another entity. During this process, clients may sometimes be required to supply a Delaware Certificate of Good Standing.
The Certificate of Good Standing is sometimes referred to as a Certificate of Existence, as it’s provided by the Delaware Secretary of State and states that your Delaware company is currently compliant with Delaware. At Harvard Business Services, Inc. (HBS), we receive requests for Delaware Certificates of Good Standing on a daily basis as the common request is for a regular or ‘short form’ Good Standing Certificate. The document will list the incorporation date, good standing status for a Corporation or LLC, and whether its Franchise Taxes are current in Delaware.
But sometimes, clients may require the Good Standing Certificate to list more information. For example, in order to close an intricate agreement, you may be asked to supply a ‘Long Form’ Delaware Certificate of Good Standing from the state. While the Long Form Good Standing Certificate is not as frequently requested, this is another service that HBS offers.
The Long Form Delaware Certificate of Good Standing will include the following:
-The birthdate of the company in Delaware
-Will state the company was formed under the laws of the State of Delaware
-Will list that the company is in Good Standing and in Existence in Delaware
-That the Delaware Franchise Taxes have been paid to date
-Will list the filing history for the company in Delaware
-Will be dated and signed by the Delaware Secretary of State
-Will have an Authentication Number.
Essentially, the Long Form Delaware Certificate of Good Standing will include the company filing history in Delaware. For example, the document will list the date and the exact time the Delaware formation document was filed. If any Amendments such as a Name Amendment have been filed for the company, then the exact date and time of the Amendment filing will also be listed on this document. Whereas, for a Short Form Delaware Certificate of Good Standing, it will include all of the items listed above with the exception of the filing history.
It’s also important to note that the Delaware Certificate of Good Standing will not list the principal place of business for your company and the document will not include the names of LLC members or the names of a corporation’s shareholders, directors, or officers. Also, clients typically need this specific document only when they’re asked to provide one. Depending on who is requesting this information, the document may only be valid within a certain timeframe i.e., 30 to 60 days or for up to 3 months, etc.
If you plan on obtaining a Delaware Certificate of Good Standing, or if you have any questions regarding the process, we can be reached at 1-302-645-7400 or 1-800-345-2677 ext. 6900 or via email at firstname.lastname@example.org. We can also be reached via skype at 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 sourceâ€™s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.