Delaware’s Joint Finance Committee opened its first day of budget hearings with revenue growth plans proposed by Gov. Matt Meyer.
Meyer’s budget proposal for fiscal year 2027 leans heavily on increasing business formation fees, which mainly affects alternative entities like LLCs and LLPs.
The state has more than a million registered LLCs, and Secretary of State Charuni Patibanda-Sanchez said it hasn’t increased the annual fees for these businesses in more than 10 years.
“If you hold an LLC, you'll get a bill, Patibanda-Sanchez said. "You pay it, and that keeps your LLC active. So that, right now is charged at about $300. So we're looking to modestly increase that by about $50."
The state has not updated other fees, like bank payments to incorporate, since the late '90s, she said.
The budget also includes plans to increase fees to dissolve a business, file a trademark, and registration documents. Patibanda-Sanchez said her office will finalize fee increases in a bill for the legislature to review.
JFC Chair Trey Paradee asked if the increase will make Delaware a less appealing destination to incorporate. Patibanda-Sanchez says Delaware provides a service speed that most states can’t compete with.
But Patibanda-Sanchez said Delaware's speed of service sets it apart, offering 30 minute to 24 hour processing fees.
“I don't think we have competitors when it comes to our corporate franchise," she said. "The fee should start to at least try to reflect the cost that it takes to do that work."
She added increasing these fees pushes the state closer.