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.
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.
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.