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).
✅ Yes. Even if:
You didn’t make money
You didn’t raise funding
You’re a solo founder
If you formed a Delaware C-Corp, you are required to:
File tax returns (Form 1120)
Send IRS forms like 1099s (if applicable)
Report foreign ownership (Form 5472)
File estimated taxes if income was earned
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 |
The IRS and Delaware care about:
Filing compliance (not just taxes owed)
Ownership transparency
Startup activity reporting
Even if your company didn’t generate profit, it's still legally obligated to file.
📌 Not filing = late penalties, IRS letters, and trouble raising funding.
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 |
Use a startup-focused tool like TaxHero AI to:
Auto-generate your tax calendar
File Form 1120, 5472, and Franchise Tax
Track 83(b) windows
Get reminders so you never miss a deadline
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 |
With AI-powered bookkeeping and tax filing, you stay focused on what matters: building your startup.
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