Good standing
In accounting, good standing means a state's confirmation that a corporation exists and is current on its annual reports and franchise taxes. In Delaware a year of unpaid franchise tax makes the charter void; banks, investors and other states ask for the certificate.
Also called Certificate of good standing.
Authority: 8 Del. C. §510 (opens in a new tab). Sources
The lessons that teach this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
For founders
The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.
- Registering in a new state: remote hires and nexusA remote hire or nexus in a new state means foreign qualification, payroll tax accounts and maybe a sales tax permit. What to register, in what order.
- First-year compliance calendar for a Delaware C-corpDelaware franchise tax, 1099s, the federal return, payroll filings, state annual reports and sales tax: the deadlines a young C-corp misses most, by month.
- Startup tax deadlines by month for a C-corpFederal tax deadlines for a calendar-year C-corp, month by month: W-2s, 1099s, Form 941, Form 1120, estimated taxes and Delaware franchise tax.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- solvent
- compliant unqualified
Also in Entity & compliance
Defined in Lexicon. This page is generated from that document, so the two can't disagree.