I am wanting to form an Inc for an internet website like Facebook or Twitter and I am running it out of my home for now. I would want to register my startup in the state of Delaware and I am in California.

I want to go with a company that says they will charge me for the submission the incorporation paperwork to form my company in DE, Delaware jurisdictional fees, registered agent fees.

My question is, beside paying them to do all of that for me, is there anything else I need to pay? Also what are some things I need to pay annually?

Also for taxes, how do I file and do taxes if my company is not making any revenue? And what are some other things I need to know about before forming my first business? Thanks.

  • Why do you want the business registered in DE? I understand that some regulations might tilt slightly in your favor, but you need to weigh that against possibly having to defend your business in a law suit in DE.... This is a lot of possible cost for a business that isn't generating revenue.
    – quid
    Apr 14 '16 at 18:04
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    First of all, consider an LLC. Secondly of all, consider states besides DE. Delaware's Court of Chancery isn't that great of a perk, many states offer what DE offers for much cheaper.
    – CQM
    Apr 14 '16 at 18:10
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    I think this is far too broad, and in particular isn't really personal finance anyway. You want a 'how to manage a startup' guide - go look for that online.
    – Joe
    Apr 14 '16 at 18:16

According to this FAQ published by the state of Delaware, your annual filing fees will be:

  • Either $75 or $350 minimum tax, depending on how your shares are classified.
  • $50 annual filing fee

Anything above and beyond that is based on company income.

If you decide to file an LLC in Delaware instead of a Corporation your annual tax is $300.

As others have mentioned in comments to your original question it's worth exploring your home state or other states. Delaware is commonly used to incorporate, but if you're very small or just starting out then often times your home state can be more favorable and less costly.

  • Because he lives in CA, he'll also need to pay the annual $800 franchise fee to CA.
    – gaefan
    Apr 14 '16 at 21:32

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