‎Feeling overwhelmed by tax season? You're not alone. Here's what you should know:

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.


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.

Get your taxes done right. Fondo is an all-in-one accounting platform for startups. Get your books closed, taxes filed, and cash back from the IRS.
April 21, 2023
← Back to all posts  

Join Our Newsletter and Get the Latest
Posts to Your Inbox

No spam ever. Read our Privacy Policy
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.