A Delaware certificate of good standing confirms that a limited liability company (LLC) or corporation was founded lawfully and is being properly maintained.
In our Certificate of Good Standing Delaware tutorial, we will go over the qualifications for good standing as well as how to get one in Delaware.
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How Do I Obtain a Delaware Certificate of Good Standing?
Request your certificate of good standing, also known as a certificate of status in Delaware, from the Department of State.
There are two major processes involved in obtaining your certificate of good standing:
1. Maintain your LLC’s compliance
2. Request a certificate of good standing.
What exactly is a good standing certificate? A certificate of good standing is a state document that confirms your company was created lawfully and has been properly maintained.
Step 1: Ensure that your Delaware business is in compliance.
To qualify for a Delaware certificate of status, your company must meet the following state compliance requirements:
Permits and Licenses
To do business in Delaware, you must adhere to federal, state, and municipal licensing requirements. Regulations such as health permits and construction permits are examples of this.
The Delaware One Stop website has further information on state licensing requirements.
State levies
Depending on your company activity, you may be required to register for several types of Delaware state tax. This might be withholding tax or Unemployment Insurance (UI) tax.
There is no state sales tax in Delaware. Instead, the state assesses a gross receipts tax on the gross income of a firm.
Every Delaware LLC is required to pay a $300 yearly tax, and every Delaware company is required to pay an annual franchise tax depending on either their authorized shares or their presumed par value.
Reports on a Year
All Delaware companies are required to submit an annual report in addition to their franchise tax payments. This report validates the fundamental details of the company, such as its major office address and director information.
On or before March 1 of each year, you may submit your annual report online with the Department of State. The application cost is $50.
Delaware limited liability companies are not required to submit an annual report.
Step 2: Obtain a Delaware Certificate of Good Standing.
Once your company is in compliance with the state, you may apply to the Department of State for a Delaware certificate of status. This may be done either online or by mail.
Is a Certificate of Good Standing Required in Delaware?
While you don’t always require a certificate of status to operate a company in Delaware, there are a few situations when you may. These are some examples:
Purchasing commercial insurance
Applying for commercial loans
Establishing a business checking account
Getting a business license in another state
