Buzz Archive:
Applicability of Delaware Income Tax

by Joseph W. Bartlett, Of Counsel, Sullivan & Worcester LLP and Founder of VCExperts.com, 11/11/2009

The Delaware income tax applies to domestic and foreign corporations, other than those specifically exempted, deriving income from business activities carried on and from property located within Delaware during the income year. The applicability of the Delaware corporate income tax to limited liability companies (LLCs) is determined by the LLC's classification for federal income tax purposes. Therefore, an LLC will be classified as a partnership, unless otherwise classified for federal income tax purposes.

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