What are the minimum ongoing costs of a Delaware C corporation?
Even if your startup has no activity, it will generally need to pay for registered agent service and franchise taxes in Delaware and any other jurisdictions it is registered to do business in.
For example, if your startup has foreign qualified in California, then it will need to pay the following annually:
- Delaware registered agent fee ($125)
- Delaware franchise tax (typically around $400 for early-stage startups)
- California registered agent fee ($125)
- California franchise tax (typically around $800 for early-stage startups)
After you incorporate and foreign qualify through Clerky, you will receive notifications when your startup needs to pay franchise tax each year.
It is possible, though somewhat uncommon, that your startup will be subject to other taxes and fees even if it has not been active. You would need to consult an accountant to be sure about your startup's specific circumstances.