What are the taxation requirements for corporations?

In Delaware, corporations are subject to corporate income taxes, franchise taxes, and unincorporated business franchise taxes. Corporate income taxes are paid on all taxable income earned by the corporation. Franchise taxes are mainly based on the number of authorized shares, the class of shares, and the number of shares issued and outstanding. The unincorporated business franchise tax is imposed on all business profits earned by limited liability companies, partnerships, and sole proprietorships. The Delaware Division of Revenue administers the corporate income tax. All corporations operating in Delaware must register with the Division of Revenue and file corporate income tax returns. Delaware taxes corporate income at a flat rate of 8.7%. In addition to the corporate income tax, corporations operating in the state must pay an annual franchise tax. Franchise tax rates vary depending on the class of shares and the number of authorized and outstanding shares. In addition to corporate income and franchise taxes, corporations operating in Delaware may be liable for the unincorporated business franchise tax. The tax rate for this tax is 1.2% of the net profit earned by the business. All corporations must pay this tax, even if they are organized in an other state. Finally, corporations may have to pay additional taxes, such as the liquor license tax, the permit tax, and the environmental tax. The amount of these taxes will vary depending on the type of business and the size of the business.

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What are the taxation requirements for corporations?

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