Last Updated on August 7, 2025 by BusinAssist Editorial Team
Many business owners believe that incorporating their company is their final task, until they are requested to provide a Certificate of Good Standing. While incorporating a Delaware business can be a bit of a headache, especially if you handle all the paperwork and overlook applying for a Certificate of Good Standing, this certificate may be required at some point during your company’s existence.
This article serves as a guide for Delaware business owners to understand what a Delaware Certificate of Good Standing is, why your business needs it, and where you can get it.
Key Takeaways
- Required for opening bank accounts, securing funding, expanding to other states, and entering partnerships.
- Confirms your business is legally registered, compliant with Delaware laws, and up to date on taxes and filings.
- Available in short-form (basic info) or long-form (detailed filings) based on your business requirements.
- Obtainable online or by mail by submitting a Certification Request Memo to the Delaware Secretary of State.
What is a certificate of good standing
A Certificate of Good Standing, also known as a certificate of existence, is a state-issued document that verifies a Delaware LLC or corporation is in ‘good standing’. Good standing means that your business complies with legal regulations, has no outstanding fees or taxes, and has up-to-date business filings.
The company must maintain continuous existence since its incorporation. The certificate is issued by the Delaware Secretary of State and specifically lists the company’s name, incorporation date, good standing status for a corporation or LLC, and whether its taxes are up-to-date.
Does this sound a bit intimidating? The process of obtaining it is simple, and there are third-party services that can assist you in getting it seamlessly. Think of it as a pass document that ensures you receive the services requiring the certificate, whether for opening a bank account or expanding your business to other states. It is valid for only 30 to 180 days.
In Delaware, there are two forms of Certificate of Good Standing; short form and long form.
- Short form Certificate of Good Standing (basic information)– only includes the business name and status.
- Long-form Certificate of Good Standing (detailed information) – includes the business name, current status, any business name changes, and all filed state documents.
Why do you need a Delaware Certificate of Good Standing?
Opening a business bank account
When you incorporate a Delaware LLC, you must open a business bank account to separate your personal transactions from your business. You will need a Certificate of Good Standing to open a business bank account. This will make it easier for the bank to verify your company status and if it is compliant with the state’s laws.
Expanding your business to another state or country
Expanding a business to another country or state can be daunting due to the complexities, unforeseen risks especially, and nuances of the foreign government. However, if you have a Certificate of Good Standing beforehand, it will make it easier for the foreign government to make the expansion process effective, helping you to settle in the country or state seamlessly.
To incorporate a company in a foreign state, the certificate of good standing will be among the required company registration documents.
Pro Tip: Always Keep a Recent Certificate Ready
A Delaware Certificate of Good Standing is often a prerequisite for major business moves – from opening bank accounts to entering partnerships or expanding abroad. Keeping a recent copy on hand ensures you’re always ready for financing, compliance checks, or new opportunities without delays.
Secure business finance
While many financing institutions benefit from financing businesses and other individuals, due diligence is essential. A Certificate of Good Standing shows that your business is legitimate and in compliance with the state, meaning they are responsible for even handling any type of finance whether a business loan or an investor financing.
Get into partnerships
To create transparency between your business partners, you must provide a Certificate of Good Standing to demonstrate that your business is legally incorporated and operating in Delaware. This enhances the credibility of business partners who will see you as a trustworthy business to enter into a partnership with.
Renewal of state license and permits
While a Delaware LLC isn’t required to provide a Certificate of Good Standing when renewing licenses, many licensing agencies and other entities might require it as proof of good standing and compliance.
Selling your business
When selling a business, the new buyer needs to know that the business since incorporation has been compliant with state law. No one wants to buy or associate themselves with a business that has legal issues with the state.
Get hired by certain clients
Some clients cannot hire a business without seeing their Certificate of Good Standing to ensure the entity exists and is authorized to transact business in Delaware. If a client needs the document, it is important to comply with the requirement for a better partnership.
What is included in a Delaware Certificate of Good Standing?
Verification of Legal Existence: The certificate confirms that the company (LLC or corporation) is legally registered and in good standing with the state.
Compliance with State Regulations: It ensures the company is current with all required filings and has met its obligations.
Tax Compliance: The certificate verifies that the company has paid all outstanding taxes.
Company Name and Formation Date: It includes the official name of the company and the date of its formation or incorporation.
Secretary of State’s Signature and Seal: The certificate is a formal document signed by the Delaware Secretary of State and bears an official seal.
Authentication Number: Certificates of Good Standing have an authentication number for verification by the requesting party.
How to obtain a Delaware Certificate of Good Standing?
A Certificate of Good Standing can either be obtained online or by mail. To apply for it, one must file a Certification Request Memo. Obtaining the certificate requires meeting certain requirements, which include:
- The business’s legal name
- The name of the individual or entity filing the request
- Depository account number (if applicable).
- Mailing address
- File number (if applicable)
- Type of the certificate (long form or short form)
To file for the certificate by mail, you will use the following address:
Delaware Division of Corporations401 Federal Street – Suite 4
Dover, DE 19901
Pro Tip: Simplify Your UK Company Registration from India
For faster processing, apply online using Delaware’s upload system instead of mailing in forms. Make sure your Certification Request Memo is complete and accurate – missing info like the business name or certificate type can delay approval.
To sum up, a Delaware certificate of good standing is an important state-issued document that demonstrates that your business is in ‘good standing’. It ensures you can open a business bank account, enter partnerships and sign contracts, secure financing, and expand your business to another state or country.
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FAQs
Q: How to obtain a certificate of good standing in Delaware?
Ans: You can obtain a certificate of good standing online or by mail. You must file a Certification Request Memo. To obtain the certificate of good standing you’ll need:
- The legal name of the business
- The name of the person or entity filing the request
- Return mailing address.
- Depository account number (if applicable).
- File number. Leave it blank if you don’t have a file number.
- Type of Certificate (Short or Long Form).
Q: What is a Delaware Certificate of Good Standing?
Ans: This is a state-issued document to verify that the company is in ‘good standing’. This means that the state is in compliance with state laws such as paying taxes and filing annual business reports, and has no outstanding registration fees.
Q: What does Good Standing mean for a company?
Ans: Good standing means that the company has been in continuous existence since incorporation, has no outstanding registration fees and taxes, has filed all annual business filings, and is not facing any legal issues or penalties.
Q: Why is maintaining Good Standing important?
Ans: Maintaining good standing is important because it helps to verify the legal status of your company, enter into a contract, secure funds, and demonstrate compliance with regulations not forgetting to ensure legitimacy with partners.
Q: Why might a company need a Delaware Certificate of Good Standing?
Ans: A company might need a Delaware Certificate of Good Standing to demonstrate it’s in good standing with the state, which is often required for various business activities like:
- To open a business bank account
- To expand to other states or country
- To secure financing
- To enter into business partnerships and sign contracts
Q: How can a business maintain its Good Standing status?
Ans: The only way for a business to maintain good standing is to comply with the state’s legal regulations. This is by paying taxes, submitting annual reports, having up-to-date permits and licenses, and ensuring all state fees are paid.
Q: What is the difference between a short-form and long-form Certificate of Good Standing?
Ans: As their name suggests, a short-form certificate of good standing has basic information such as the legal business name and its status, while a long-form has more detailed information such as the changes made in the company since incorporation, the legal business name, and status.
Read Also:
- How to Get a Virtual Business Address for My LLC in USA: Step-by-Step Guide
- Setting Up an LLC: Can I Use a Virtual Address for My Delaware LLC?
- Why Is Delaware the Best State to Form an LLC? A Comprehensive Guide
Joy is a content writer at BusinAssist with 6+ years of experience in content marketing and social media strategy. She specialises in company formation and virtual operations, guiding entrepreneurs through global markets with clarity, drawing on her marketing and PR background. Business Assist with BusinAssist – your business success partner.