The attorney for my business strongly recommended registering my Delaware
corporation in the state of Washington, which is where we primarily
Had we not registered the business in Washington state, the business would
not have had access to the court system or any state run business programs.
Analytics - LTV - Boosting Profits - Digital Marketing
February 10th, 2014
Yeah, I am pretty sure that you do...there is an annual franchise fee plus other stuff...
Lean Transformation, Strategic Change & Benefit Realization Leader
February 10th, 2014
Yes - that is my understanding. You need to register for your primary location for doing business. The litmus test seems to be where you are receiving payments and maintain operational bank accounts.
I just went thru this process myself for an online business and used www.clerky.com - they are a y-combinator company that helps you register and file paperwork. Not getting a commission or anything but found it super helpful thought you might as well.
Not sure. But, I was surprised by the DE Franchise tax which I had to
pay. They base it on authorized shares unless you use an alternative "par
value" calculation. I logged on to the DE dept of revenue site to see what
I owed and it said I owed $52K (it defaults to calculating the tax based on
number of authorized shares)- I almost had a heart attack. But using the
par value calc I got it down to $400.
Julie, we are not incorporated in DE, but i would suspect that it depends on what kinds of taxes are levied in MA. In WA we pay no state income tax, but there is a B & O tax (business and occupation), in Redmond there is a "Redmond City head tax" so if we have employees in Redmond we would pay RC head tax, L&I, payroll taxes, etc. until the company starts to generate revenue then we don't have to worry about paying B&O or sales tax, but we do have to file returns with dept. of revenue and Labor and industries (if we are paying salaries). A local accountant should be able to provide guidance there.