The Delaware Tax Scare

Delaware apparently likes to scare people. Here is how it works. They send you an invoice for keeping your corporation alive which shows you owe $91,000. Or something ridiculous. You know it can't be right.  You are a startup. You don't even have any revenue yet.

But still, you received the invoice, so you freak out. You email your lawyer this message:

"This estimate just scared the #$@&*( out of me. It says we owe $90k or so. Please advise."

What does your lawyer say:

"Turn the form over, and calculate your taxes using the assumed par value capital method. The bill should be around $400."

I suppose Delaware likes to scare people because....it is just the way they have been doing it forever?

I don't know, but it is certainly not a good customer service experience, if you think of it that way.

But you could also view it as a test of your startup skills. Certainly you have to be able to handle situations like these. The lesson? Don't freak out. Stay calm.

Delaware has published helpful information here: http://corp.delaware.gov/frtaxcalc.shtml