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If I understand correctly, a California company that forms a Delaware C-Corp will not only have to pay California state taxes but also 7.8% taxes to Delaware.
by louprado 10y ago
If I understand correctly, a California company that forms a Delaware C-Corp will not only have to pay California state taxes but also 7.8% taxes to Delaware.
Is my statement accurate ? 7.8% of net profits is such a huge expense I can't understand how any company justifies it.
- desdiv 10y agoNo. That 8.7% tax is for taxable income derived from Delaware i.e. if you physically operate out of Delaware.