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Is that the only cost per year for having a Delaware Inc? $400 less than the $800 I am currently paying per year for my California LLC. Is the amount you pay to
by nodesocket 12y ago
Is that the only cost per year for having a Delaware Inc? $400 less than the $800 I am currently paying per year for my California LLC. Is the amount you pay to Delaware based on company assets and value though?
- tim333 12y agoNot sure about Inc but Delaware LLCs are $250/yr plus agent fees from $49/yr or so for the cheapest.
- jclarkcom 12y agoIf you are doing business in CA or have employees there, you have to pay the $800 CA franchise tax fee in addition to the Delaware tax. So it's cheaper to incorporate in CA from that perspective.
- nodesocket 12y agoInteresting, didn't know that you have to pay the CA franchise even if you are a Delaware Inc. How do they enforce this?
- adventured 12y agoIt's a getting caught premise. If you're a foreign corporation operating in California, you're of course supposed to register as such and pay the franchise tax. If you generate physical sales there, have local employees, or do just about anything, you'll probably file something in the state eventually that will give away that you're operating there (and or someone else you do business with in CA will). I haven't looked up the specific consequences in CA, but I would assume they have penalties for not paying the tax (eg what you were supposed to pay might get amplified).