By: Joseph Marrow
On Thursday, April 10, 2014, the Delaware legislature passed a new law, effective retroactively to January 1, 2014, which raises the annual corporate tax on limited liability companies, limited partnerships and general partnerships from $250 to $300 per year. In addition, the legislation increases the minimum annual corporate franchise tax on businesses incorporated in Delaware from $75 to $175. The Delaware legislature passed the legislation in an effort to fix a state budget gap. Delaware has always been considered one of the most attractive states in the country for forming a new business enterprise. It remains to be seen whether the new law will have an adverse impact on the state’s ability to continue to attract new businesses.
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