Aggressive Taxation Threatens Delaware’s Incorporation “Golden Goose”
From our friends over at CRI:
Aggressive state actions on Corporate Franchise Fees and Abandoned Property collection on out-of-state companies may kill the Golden Goose that is providing one-third of state revenue in Delaware. The Markell Administration has already increased collections and is asking for more for a net increase of $300 million, or 27% since 2009. Meanwhile, Nevada and North Dakota are challenging Delaware’s longstanding monopoly as the place to incorporate.
Delaware has had favorable incorporation laws led by the Chancery Court that protects corporate and share holder interests. A large percentage of Corporations and Limited Liability Companies have incorporated in Delaware even if they don’t do business here. They pay an annual franchise fee to maintain their corporate status. The fees have already increased $110 million from a 2010 rate change, and the Governor has asked for another $51 million increase this year for a total increase of 24%.
Now the state is preparing to permanently damage the state’s reputation as a pro-business state.
Read more here: Delaware is killing its “golden goose”
- The Delaware Business Weekly Round Up – April 11, 2014
- Latin American Community Center receives Delaware’s highest quality level award