Do I Need to File Taxes for My Delaware C-Corp With No Activity?

Описание: Do I Need to File Taxes for My Delaware C-Corp With No Activity?

Do I Need to File Taxes for My Delaware C-Corp With No Activity?

Generally, yes. A domestic C-Corp usually files Form 1120 even if it had no taxable income. If your startup is incorporated in Delaware, check the state’s annual report and franchise tax separately. The federal return and Delaware filing are two different tasks. IRS Form 1120 instructions · Delaware annual reporting

What counts as activity if we made no sales?

Start by looking at what moved through the company. Did a founder pay the incorporation fee, put money into the bank account, or buy software for the team? Those transactions belong in your records even if you never invoiced a customer. If an owner is foreign, flag any transactions between that owner and the company for a separate Form 5472 review. IRS recordkeeping guidance · IRS Form 5472 instructions

Why is my Delaware franchise tax bill so high?

Delaware’s notice uses the Authorized Shares Method. If you authorized a large number of shares, compare that amount with the Assumed Par Value Capital Method. The comparison uses figures from your cap table and books, including issued shares and gross assets. See TaxHero’s Delaware franchise tax guide and the state’s calculation instructions.

First-year C-Corp filing checklist

• Find your EIN, incorporation date, and tax year-end.
• Gather bank statements, receipts, and year-end books.
• List founder contributions, loans, and expenses paid personally.
• Pull authorized and issued share counts and gross assets.
• Check the federal return, Delaware annual report, and franchise tax separately.
• Flag foreign ownership or activity in other states for review.

Ready to map your filing dates? Start with the free TaxHero Tax Calendar.