Effective July 1, 2014, for the tax year 2014 and thereafter, Delaware franchise tax has increased. The amount of the new franchise tax fee is dependent upon the entity type. Following are the details.
Every domestic and foreign limited liability company (LLC) and limited partnership (LP) registered in the state of Delaware will now owe $300 per year. The previous amount was $250 annually.
Every domestic corporation that has 5,000 authorized shares or less will now owe $175 per year. This is an increase of $100 over the previous amount of $75 annually, plus the required annual report fee of $50.
Every domestic corporation that has more than 5,000 authorized shares, but less than 10,000 authorized shares will owe $250 (instead of the previous amount of $150) plus $75 on each 10,000 authorized shares or part thereof. This is in addition to the required annual report fee of $50.
In summary, the bill increases the franchise tax amounts assessed on limited liability companies and limited partnerships by $50. It also raises the corporation franchise tax amounts by $100 for those entities that file using the authorized shares method.