You may be asked to provide a certificate of good standing for your Delaware limited liability company (LLC). In addition, many creditors ask for a certificate of good standing before issuing business credit.
A Delaware certificate of good standing is relatively easy to obtain, but it does take some know-how.
What Is a Delaware Certificate of Good Standing?
A certificate of good standing issued by the state verifies that your LLC complies with all Delaware regulations. The state will issue the certificate once you’ve met all deadlines, such as annual report filings.
Delaware does not require a certificate of good standing, but banks and creditors might request one, so it’s wise to have it on hand.
In What Situations Would I Need a Certificate of Good Standing?
A bank or creditor might request a certificate of good standing as part of their due diligence and risk assessment when they apply for a business loan or business credit.
They need to verify that you’re registered to do business in the state and fully compliant. If you expand your business to other states, you’ll have to register as a foreign LLC. In such cases, the new state may request a certificate of good standing from your home state.
Requirements to Obtain a Certificate of Good Standing in Delaware
You must have a registered business entity in the state, either an LLC or a corporation. Sole proprietorships and partnerships do not register with the state, so they cannot obtain a certificate of good standing.
You’ll also need to be up to date on all Delaware business licenses, permits, and reporting requirements for your LLC or corporation in Delaware.
Which Department Issues Certificates of Good Standing in Delaware?
In Delaware, the Division of Corporations issues certificates of good standing by uploading your request to the Division of Corporations website.
The fee is $50 for a short-form certified certificate and $175 for a long form. Assuming your LLC is in full compliance, the certificate will be mailed to you by first-class mail as soon as your request is processed.
Alternatively, you can mail your request, along with the fee, to the following:
Division of Corporations
401 Federal Street
Dover, DE 19901