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Nobody mentioned the shares based tax implications of Delaware Corps. Surprise! You owe them $50k!
by edoceo 11y ago
Nobody mentioned the shares based tax implications of Delaware Corps. Surprise! You owe them $50k!
- JDDunn9 11y agoWhat gotchas are you referring to? I thought Delaware was the shell corp state of choice because of no taxes and laws that favor businesses.
- ogsharkman 11y agoHe is referring to how the default franchise tax is calculated using the "Authorized Shares Method" which gives many an MI when they see they owe $20k+, without realizing you can use the "Assumed Par Value Capital Method" and your bill suddenly becomes like ~$500.
- tricky 11y agoThere is an alternative way to calculate tax that is not based on number of shares. Not going to lie, I about had a heart attack when I got my first annual letter from Delaware. I think it's a right of passage.