Learn how to accurately calculate and pay your taxes owed for 1099, DE Franchise Tax, and Federal Taxes with our comprehensive breakdown. Take control of your finances today!
Feeling overwhelmed by tax season? You're not alone. Here's what you should know:
1099
When it comes to the 1099s, they are simply for informational purposes, used to inform the IRS of how much you paid someone.
DE Franchise Tax
The DE Franchise Tax starts at approximately $450 per year, and it increases depending on the amount of cash your startup has. For every million dollars in assets, the tax will increase by approximately $400.
Federal Taxes
You also have your federal taxes, where if your company is not profitable, you will not owe anything to the IRS. However, the new tax rule under section 174 has changed the calculations, and more and more companies may be required to pay taxes.
State Taxes
On the state side, the tax varies depending on which state you are in. For example, California has a minimum franchise tax of $800. However, all of these taxes are calculated and paid by whoever files your taxes.
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Disclaimer
This guide for informational purposes only and does not constitute legal or tax advice or create an attorney-client relationship. Companies should consult their own attorneys or tax accountants for advice on these issues. Because of the generality of the issues discussed in this piece, the information provided may not apply in all situations and should not be acted upon without specific legal or tax advice based on particular situations.
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