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In Delaware, there are several different business entities such as LLC and Corporation (S-corp and C-corp). All information such as business entity, certificate of incorporation, and a statement outlining the reason for existence are mandatory requirements for all LLCs and Corporations form in Delaware.

Delaware corporations have to pay both franchise tax and corporate income tax. The corporate tax rate is 8.7% (2019).

For the S-corp, the tax is paid through the individual shareholders. It means the tax payment is dependent on each shareholder of that income. Furthermore, each shareholder of the S-corporation will pay tax to the state based on his/her share from the company’s income.

Overall, the tax rate of each shareholder will depend on all his/her taxable income for the current year.

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