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Secretary of State to seek modest increases to LLC and transactional fees; bill due in 1–2 weeks
Summary
Charani Patibanda Sanchez told the Joint Finance Committee she will introduce legislation within 1–2 weeks to modernize and modestly raise annual fees for alternative entities (LLCs, LPs, series LLCs) — roughly a $50 increase on existing $300 fees — plus updates to small legacy fees; she said the corporate franchise tax is not affected.
The Delaware Secretary of State told the Joint Finance Committee that her office is drafting legislation to modernize several longstanding Division of Corporations fees and to modestly increase annual fees for alternative entities, including LLCs.
Secretary Charani Patibanda Sanchez said the proposal would increase the annual fixed fee for many LLCs by about $50 — from roughly $300 today — while also updating low, legacy fees that have not been adjusted in decades, such as pre‑clearance and certain trademark filing fees. “This is an annual fee … that has not actually been increased for over 10 years,” she said, adding the change would be gradual and not touch the corporate franchise tax.
Why it matters: Delaware’s incorporation and corporate services business is a major revenue and service area for the state. Sanchez told committee members the proposed changes are intended to modernize fees to reflect present‑day costs and maintain high turnaround service times that the Division of Corporations advertises as an advantage for Delaware‑based entities.
Next steps: Sanchez said the bill is being drafted with House leadership and is expected in the coming one to two weeks; the division will provide a one‑page summary when the measure is introduced. Committee members asked for detail about nonprofit impacts and expedited versus normal filing timelines; Sanchez offered to follow up with specifics during the agency’s JFC hearing and provide statistics on processing times and staffing.
