BulldogTom Posted July 11, 2020 Report Share Posted July 11, 2020 TP formed a DE corporation cause the interwebby told him it was a good Idea. Is completely based in CA. I see that he has to pay a franchise tax to DE for the privilege of incorporating in the state. But I don't think they have to file a DE 1100 because they are "not doing business" in DE and the income tax is based on the apportionment to DE from the Federal 1120. Do I have this correct? Thanks Tom Modesto, CA Quote Link to comment Share on other sites More sharing options...
jklcpa Posted July 12, 2020 Report Share Posted July 12, 2020 Correct. No filing requirement if no business in DE. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted July 12, 2020 Author Report Share Posted July 12, 2020 Thanks Tom Modesto, CA Quote Link to comment Share on other sites More sharing options...
Edsel Posted July 12, 2020 Report Share Posted July 12, 2020 I've been told lawyers advise corporations to incorporate in Delaware. I've often wondered why. I don't see any tax advantages. Are there legal reasons?? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted July 12, 2020 Report Share Posted July 12, 2020 8 hours ago, Edsel said: I've been told lawyers advise corporations to incorporate in Delaware. I've often wondered why. I don't see any tax advantages. Are there legal reasons?? Delaware has favorable (lax) laws for big corporations, but there's no need for most of our clients. 1 Quote Link to comment Share on other sites More sharing options...
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