Operating a Delaware company includes several taxes both fixed and variable. Mainly, these are franchise tax, federal corporate tax, and annual income tax. Imposing of such taxes may vary depending on your residency status and active sales operations.
Incorporating your business in Delaware offers some great benefits, in terms of taxation, litigation, and formation. The operation of an LLC or C-Corp includes several taxes both fixed and variable. Mainly, these are franchise tax, federal corporate tax, and annual income tax. Now, let us look at these costs in more detail.
How Can I Benefit from The Tax Savings by Incorporating in Delaware?
Following your incorporation processes, your company will be liable for a flat-rated $300 franchise tax, annually. The franchise tax is a flat-rated and obligatory tax, regardless of your company type. Along with the state of Delaware, numerous states have been imposing such taxes on companies with the name of state corporate income tax. To clarify, there is no state corporate income tax on products sold by Delaware companies that are operating outside of Delaware. Furthermore, keep in mind that if you own a Delaware incorporated company shares and reside outside of Delaware, your shares will not be subject to Delaware taxes.
We are happy to announce that Clemta.com offers a solution covering the tax minimizing and payment process. With Clemta, you can now pay your franchise tax and annual taxes from anywhere in the world! For more information about how to pay all your taxes regarding your Delaware business through Clemta and how much it will cost you please check our Website or contact us through one of our email addresses [email protected] or [email protected].
Assuming that you do physical business and reside in Delaware, additional tax liabilities might be imposed depending on your operational and legal structure. Having an operationally active C-Corp will require you to pay the federal corporate tax, which is currently a rate of 21%. Additionally, the distribution of dividends among the shareholders residing in Delaware will cost them paying the income tax regarding the dividend payments, which will also result in double-taxation. Having an operationally active LLC will ensure you more flexible taxation. You may choose to file taxes of your operationally active LLC, either on a disregarded entity basis or C-Corp taxation mentioned above. A significant advantage of the disregarded entity taxation is being able to file the taxes of your company with your personal income taxes to the IRS. This taxation method will surpass double taxation, inherently. Including a full-service taxation consultancy regarding your complex tax issues, Clemta offers a complete consultancy in terms of your incorporation and post-incorporation procedures. You may check our website and add required services to your cart with one-click, as your first step of the incorporation phase. Clemta will handle the rest for you.