Being in good standing allows a corporation, LLC, or other statutory entity in Delaware to maintain the rights and privileges of doing business as that statutory entity. Good standing certificates are required when expanding to other states and may be required for financing, business transactions, and licensing.

What Is a Delaware Corporation? A Delaware corporation is a company that is legally registered in the state of Delaware but may conduct business in any state. Delaware first began to adapt its laws in the late 19th century, making changes that would attract businesses away from other states such as New York.

Member or Manager managed Delaware Limited Liability Company The Delaware LLC is formed by filing a certificate of formation. The Delaware LLC certificate of formation does not require listing the members and managers, thus making it relatively private.