Part of bootstrapping a startup is to learn every aspect of running a business, from paying taxes to SEO, from social media to server setup! In a nutshell, do it all yourself!

One of the most confusing things is paying taxes and there are so many datelines. It’s SO important not to miss a dateline because IRS is seizing every moment to fine you a penalty.

These are important datelines for a Delaware Corporation run in the State of CA.

Mar 1st
State of Delaware - Due date to file an Annual Report and pay franchise tax
http://corp.delaware.gov/frtax.shtml

There are 2 ways to calculate Delaware franchise tax. Most corporations would use the Assumed Par Value Capital Method unless their authorized shares have no par value.

In order to use the Assumed Par Value Capital Method, you’ll need 3 important numbers

- Total Gross Assets,

- Total Authorized Shares (aka maximum number of shares a company can issue)

- Par value of the authorized shares.

Total Gross Assets is the “total assets” reported on the U.S. Form 1120, Schedule L (Federal Tax Return form) for the relevant tax year.

Because of this, it’s essential to get Corporate Tax (both Federal and State) completed before Mar 1st even though the dateline to file Corporate Tax is Mar 15.

DE Quarterly Tax Due Dates

If DE taxes is $5,000 or more, then quarterly taxes are due on 6/1, 9/1, 12/1, 3/1

Federal and State Quarterly Tax Due Dates
Quarterly taxes are due 4/15, 6/15, 9/15, 12/15

Where to pay online?
Delaware Franchise Tax - http://corp.delaware.gov/achChgInfo.shtml
Federal Tax, EFTPS Online - https://www.eftps.gov/eftps/
It’s cool that you can schedule federal quarterly tax deduction in advance so that you can set it up once and forget about it for the year.
California Franchise Tax - http://www.ftb.ca.gov/online/payment_choices.shtml

My corporation didn’t make any money, do I still have to pay and file taxes?

YES, you do! Even when the corporation makes a loss, it’s mandatory to pay CA and DE minimum franchise tax. As of writing, here are the minimums:

CA - $800 franchise tax

DE - $75 franchise tax + $50 annual filing fee 

Photo By: alancleaver_2000

I live in Silicon Valley and I’m an immigrant. My journey to the U.S. began 11 years ago. Unlike my other immigrant friends, I didn’t have to depend on H1B visa. It took 4.5 years of endless paper work, finger prints, immunizations and a lot of patience to finally get my greencard. In that 4.5 years, I had to reapply because immigration lost my case file, and I wasn’t allowed to leave the country unless I applied for “immigrant advance parole”. Seriously, it was a hellish process but I can’t complain because I’m one of the few lucky ones.

Some years ago, my ex-husband and I decided to go separate ways and along with it, he also took half of my assets. Many felt sorry for me but I continued to think I’m lucky because the freedom to live in this country is priceless, especially for an entrepreneur. I grew up in Singapore and briefly lived in London, I have many other options and a diverse international exposure but I chose to stay here. This is why.

The one common thing startups need is MONEY. Other countries have cleverly used this as a bait, not only to attract their own nationals to return to their home country but also made it really easy for foreigners to launch their startups by providing lucrative incentives like low corporate tax, free office space, super attractive funding options/subsidies, dynamic English-speaking workforce and the ease of getting work authorization. While the American government doesn’t have the same fiscal policies or cash reserve to compete with other nations, America has one key ingredient that other countries lack - the entrepreneurial culture and camaraderie. This is the core foundation of the American Dream that fuels America’s unbeatable innovation. It’s the same spirit and camaraderie that brought together many entrepreneurs and investors like Paul Grahma, Brad Feld, Dave McClure, Shaherose Charania and team to create and garner support for the Startup Visa Movement.

Over the 11 years in the U.S., I’ve grown and learned so much from other entrepreneurs and advisors who are so generous in sharing their experiences and advice. The entrepreneurial ecosystem is so strong and it’s natural for all who have been on the startup journey to give back in one way or another. This is the reason why I chose to stay in America. It’s the best environment to launch Closet Couture and Love With Food. The entrepreneurial culture is America’s greatest intangible asset and a national treasure. It draws entrepreneurs all around the world to come here because it allows innovation to proliferate and in return, create jobs. This is what other countries lack but trying hard to replicate.

If Congress is able to create different variations of H1B visas (e.g. H1B1 that took effect in 2004 as part of Free Trade Agreement), I sincerely hope Congress is able to see that creating a new class of visa for immigrant entrepreneurs is just as or even more important and urgent. While other nations have surprisingly recovered from the recession, their desire to attract startups away from America may shake the core foundation of the great American entrepreneurial culture. Creating a new class of visa for immigrant entrepreneur would be an ideal defensive move.

Interested to help? Send a letter to Congress by clicking on “Tweet Congress” below. To find out more about Startup Visa, click here.

I spent the first 8 years of my career in enterprise software, mainly in finance and payroll systems. The extensive travel was adventurous, but it was also highly stressful. Being accountable for every penny that goes from the system to pay checks, banks and irs, it’s definitely THE way to die young of a heart attack. 3 years ago, I said goodbye to the enterprise world and ventured into consumer web which offers more room for creativity. Both worlds are in technology but the lifestyle and experience are so different!

Diet
Enterprise: Fine dining experience
Web: Pizza and beer (pizza hut is considered gourmet)

Attire
Enterprise: Suits or business casual
Web: Mostly in PJs or T-shirt & jeans

Learn
Enterprise: Get a big company to pay you to learn and get certified!
Web: Buy a book, watch a screen cast! Search engine is your best friend!

Data Integrity
Enterprise: You screw up, you’re fired!
Web: Oppss…we messed up, that’s why we are in beta!

Testing
Enterprise: Development -> Unit test -> User Acceptance Test -> Test Environment  -> Live
Web: Development -> Live (let the consumers be testers!)

Design & User Experience
Enterprise: As long as every penny tallies, who cares about design and user experience?
Web: A cluttered and confusing site is your worst enemy. Good, intuitive design is an ART!

Features
Enterprise: Features are dictated by business rules and processes. 0 creativity needed!
Web: Let’s build and pray our users will like it!