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Do Startups Pay Taxes in Their First Year?

Описание: Do startups pay taxes in their first year? Yes. Learn what your Delaware C-Corp owes in 2025 - from IRS Form 1120 to Franchise Tax, even with $0 revenue.

Do Startups Pay Taxes in Their First Year?

Yes - Here’s What You Owe 

 

Just launched your startup? You might think you don’t owe anything to the IRS or state if you haven’t made revenue yet. But that’s a costly myth. In your first year, there are required tax filings for every Delaware C-Corp — even with $0 income. Here’s what you actually owe (and what you can avoid).

 


❓Do Startups Pay Taxes in Their First Year?

✅ Yes. Even if:

If you formed a Delaware C-Corp, you are required to:


📋 What You Might Owe in Year 1 (Even Without Revenue)

Filing / Tax Due Date (2025) Required? Details
Form 1120 Apr 15 ✅ Yes Federal corporate tax return (IRS)
Delaware Franchise Tax Mar 1 ✅ Yes $225–$400 minimum (even $0 revenue)
Form 5472 (if foreign-owned) Apr 15 ✅ Likely $25,000+ penalty if missed
1099-NEC (if contractors) Jan 31 ✅ If applicable Send if you paid $600+ to freelancers

🧾 Why You Still Owe Even Without Income

The IRS and Delaware care about:

📌 Not filing = late penalties, IRS letters, and trouble raising funding.


💥 What Happens If You Don’t File

Here’s what founders risk by skipping taxes in year one:

❌ Mistake ⚠️ Consequence
Ignoring Form 1120 IRS late penalties + noncompliance
Skipping Franchise Tax Loss of Delaware good standing
Not filing 5472 (foreign-owned) $25,000+ penalty from IRS
Missing 1099 filings Penalties + audits

💡 How to Stay Compliant (Even If You’re Pre-Revenue)

Use a startup-focused tool like TaxHero AI to:

📥 Grab Tax Calendar


✅ TL;DR: What Startups Owe in Year 1

You Have… You Need to File…
Any Delaware C-Corp Form 1120, Franchise Tax
Foreign founder or investor Form 5472
Paid contractors/freelancers 1099-NEC

🔗 Related Blog Posts for First-Year Founders

 


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