Description

Senate Bill 21 is new bipartisan legislation that is designed to keep business entities in our state and preserve Delaware's status as the premier jurisdiction for corporate formation and domicile. Other states are currently luring corporations out of Delaware. The revenue stream generated from Delaware entities and their franchise and filing fees is nearly $2.5 Billion annually, more that 35% of the states revenue. Every major company that leaves Delaware represents a loss of about $250,000 in tax revenues per year. LLCs pay a flat $300 per year in taxes. It would take the formation of 833 new LLCs to make up the revenues for just one major company. The loss of this revenue from large corporations would be catastrophic. It would require Delaware to look at other funding sources, such as a sales tax or increases to the state's income tax rates. And it could require Delaware to raise the $300 annual franchise fees for LLCs Corporate fees and taxes pay for healthcare, teachers, food programs, protection of our beautiful natural resources, and other state services. To preserve the quality of life of all Delawareans, we must work together to ensure the passage of Senate Bill 21.