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lukaslukas | 3 months ago

When we logged into the tax portal, only this amount was shown as to pay. Terrible UX.

In fact, the fine was actually what we paid (minimum tax + missed deadline + interest).

“Normal fine”: We just didn't expect you to be able to incorporate a company and if you miss the tax payment deadline, you will receive a fine 100 times higher than the cost of incorporating the company, no matter what.

But of course, I don't recommend our way. Don't do it. It was wrong. Pay your taxes. Fill out all the required documents.

discuss

order

phonon|3 months ago

Are you sure this was the Federal tax portal, and not the Delaware Franchise tax? As far as I know, only the latter defaults to a "scary" tax calculation based on number of shares (but you can easily switch it to the Assumed Par Value Capital Method based calculation, which would be $400 in total for you, assuming you filed on time). Federal taxes should be $0 if you had no profits.

wdaher|3 months ago

This is 100% about Delaware Franchise Tax and is a rite of passage for all first-time founders. (There is no portal you can log into to view your federal taxes owed.)

Here’s a detailed writeup I prepared a while back about exactly how to resolve this if you want to DIY it. (This is one of the very few filings I actually recommend you DIY.)

https://pilot.com/blog/how-to-file-your-delaware-franchise-t...