Legal · Legal structures

What are the taxes that Delaware companies face after completing an exit?

Bhavna Pruthi Software Developer at Chetu India Pvt ltd

February 12th, 2017

I am currently in the process of setting up the incorporation structure for my business. As any other entrepreneur, I have in mind doing an exit in the next 5 to 7 years for my hyper growth venture.

Keeping in mind the exit, what are the typical taxes that a Delaware company pays when an M&A transaction occurs? I assume there are different outcomes and that taxes would depend mainly on the type of transaction being cash vs stock.

What are your thoughts on this subject and do you have any tips and things to keep an eye out for?