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Who Needs a Certificate of Good Standing?
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Who Needs a Certificate of Good Standing?


By Andrew Millman Tuesday, May 12, 2015

what is a delaware certificate of good standingWhat is a Certificate of Good Standing?  When (and why) would you need to order a Certificate of Good Standing for your Delaware company? We hear these questions from clients almost daily. The Certificate of Good Standing is a declaration issued by the Delaware Secretary of State and announces that your company has been legally created and exists as a Delaware company in “Good Standing.” It simply affirms that the referenced entity is current with the Delaware Franchise Tax and has filed all the appropriate paperwork (Annual Reports) with the State of Delaware Division of Corporations.

From time to time, clients will need to obtain a Certificate of Good Standing for their Delaware Company for any number of reasons. All banks routinely require them at the closing of a real estate financing and when making loans, letters of credit and lines of credit to corporations and Limited Liability Companies (LLCs). Some banks even require a company to provide a Certificate of Good Standing when opening a bank account.

If you plan to file an Application for Authority to do business in another jurisdiction with a Delaware Company, other states routinely require that a Certificate of Good Standing from Delaware accompanies the registration.

Some clients order a Certificate of Good Standing for their records after they pay the Delaware Franchise Tax each and every year. This proactive record-keeping practice helps to ensure that your company's records are readily available for your attorney, accountant or banker.

A Delaware Certificate of Good Standing can be ordered directly from Delaware for $50. The state will send you, by mail within 2 weeks, a hard copy document. However, Harvard Business Services, Inc. can obtain your company's Certificate of Good Standing from the State of Delaware and electronically send it to you, typically within 24 hours. If the matter is urgent and you need the Certificate of Good Standing immediately, we also offer same-day and 2-hour express options.

Call Harvard Business Services, Inc. at 1-800-345-2677, Option 2 or go online to https://www.delawareinc.com/ourservices/certificate-of-good-standing/ to order your digital Certificate of Good Standing from Harvard Business Services, Inc. 

 

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