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I'm going through this exact same issue right now. I created a C-Corp in DE naively thinking that thats what everyone did and I expected to pay no more than the

I'm going through this exact same issue right now. I created a C-Corp in DE naively thinking that thats what everyone did and I expected to pay no more than the minimum ($75 or so) in franchise taxes at the beginning. Apparently, since the state needed more revenue, they passed a law that dramatically increased the minimum to $400. I was shocked when i realized this and called the state repeatedly to make sure that there wasn't a mistake. I paid $400 back in Feb and I'll pay another $400 soon so that I can dissolve the C-corp. I now have an LLC in Texas (my home state) which more than satisfies my needs, for now. Talk about an expensive mistake.

seaotter002 16y ago
As am I, I know exactly what you're going through. Have you thought about filing the dissolution as a 'Before Business Begins' dissolution (form 274)? We actually never got to the point of publicly releasing our project (and did not have a single cent of revenue), so I was looking at that type of dissolution to avoid this year's $350 minimum tax. I have still not found what they define as "Beginning Business" in their legal statutes, but I'm assuming a company that never released a product and made no money would fit that definition. Of course, IANAL.
- CoachRufus87 16y ago
  I'd never heard of that form, but I'll look into it.
  - seaotter002 16y ago
    Yeah, check section 274 here: http://delcode.delaware.gov/title8/c001/sc10/index.shtml http://delcode.delaware.gov/title8/c001/sc10/index.shtml The various dissolution forms are here: http://www.corp.delaware.gov/disso09.shtml http://www.corp.delaware.gov/disso09.shtml
    - CoachRufus87 16y ago
      It seems that all dissolution forms have this requirement: "Before the Certificate can be filed, all applicable Annual Franchise Tax Reports must be filed. Please contact the Franchise Tax Section prior to submitting the document for filing to determine the Annual Reports due. Please make your check payable to “Delaware Secretary of State”"
      - seaotter002 16y ago
        You'll still have to pay $50 for the tax report to be filed (for each year), but there's no tax liability for the company if you file before business begins or before issuing shares. You just can't file the reports online, you'll need to talk to a representative of the Franchise Tax Board and they'll email or fax you the company's Annual Franchise Tax Report.
tptacek 16y ago
Can I ask why you created a C-Corp in the first place?
- seaotter002 16y ago
  Can't speak for CoachRufus87, but I did because my business partner was not a US citizen and we planned on taking on funding.
- CoachRufus87 16y ago
  Naivety

seaotter002 16y ago

As am I, I know exactly what you're going through. Have you thought about filing the dissolution as a 'Before Business Begins' dissolution (form 274)? We actually never got to the point of publicly releasing our project (and did not have a single cent of revenue), so I was looking at that type of dissolution to avoid this year's $350 minimum tax. I have still not found what they define as "Beginning Business" in their legal statutes, but I'm assuming a company that never released a product and made no money would fit that definition. Of course, IANAL.

CoachRufus87 16y ago
I'd never heard of that form, but I'll look into it.
- seaotter002 16y ago
  Yeah, check section 274 here: http://delcode.delaware.gov/title8/c001/sc10/index.shtml http://delcode.delaware.gov/title8/c001/sc10/index.shtml The various dissolution forms are here: http://www.corp.delaware.gov/disso09.shtml http://www.corp.delaware.gov/disso09.shtml
  - CoachRufus87 16y ago
    It seems that all dissolution forms have this requirement: "Before the Certificate can be filed, all applicable Annual Franchise Tax Reports must be filed. Please contact the Franchise Tax Section prior to submitting the document for filing to determine the Annual Reports due. Please make your check payable to “Delaware Secretary of State”"
    - seaotter002 16y ago
      You'll still have to pay $50 for the tax report to be filed (for each year), but there's no tax liability for the company if you file before business begins or before issuing shares. You just can't file the reports online, you'll need to talk to a representative of the Franchise Tax Board and they'll email or fax you the company's Annual Franchise Tax Report.

tptacek 16y ago

Can I ask why you created a C-Corp in the first place?

seaotter002 16y ago
Can't speak for CoachRufus87, but I did because my business partner was not a US citizen and we planned on taking on funding.
CoachRufus87 16y ago
Naivety