State Tax Update for Delaware Corporations

July 17, 2017

While the State of Delaware has numerous attractive aspects for entities that incorporate there (a flexible corporation statute, the well-respected Court of Chancery, a legislature that prioritizes the stability of Delaware’s business laws), Delaware’s corporate franchise tax can be an unexpected burden. On July 2, Delaware Governor John Carney signed a budget bill for Fiscal Year 2018 that includes a provision making Delaware’s corporate franchise tax even more burdensome.

Delaware’s franchise tax is generally imposed on all corporations incorporated in the state irrespective of whether they actually do business there. Moreover, as a tax that is calculated based on capital stock, it is imposed on corporations even if they are not generating income

Read "State Tax Update for Delaware Corporations."