Taxes for Delaware based businesses, how do it work?

Question

I have a C corporation in Delaware, conducting very little business and I live in Florida. When I do my taxes from online sales, how should I do that? All my things are registered in Delaware, my sales online, I do have an office in Fl but all is done from Delaware, any advice in how should I do my taxes?

Answer 1

For the business, file a Delaware income tax return (Form 1100). It doesn't sound like you have any state income tax nexus in other areas, so you should be fine just filing in DE.

I'm a bit confused by the previous answer. There is no passthrough income for a C corporation. S corporations and partnerships have that, but not C corporations.

You would file your personal taxes separately as a Florida resident.

I'm sure there are other variables. It might be wise to seek the opinion and/or services of a tax professional in your case, just to protect yourself.

Best of luck.

Answer 2

You have to remember that you and the corporation are two separate entities. Since the C Corporation is registered and doing business in Delaware, it needs to file in Delaware. All passive income you receive from the Corporation is subject to Delaware taxes. You will need to file a non-resident Delaware return for yourself and report that portion of income. The only portion of income you don't have to report in Delaware is if the C corp earned interest. That's taxable in your own state regardless where the interest income was generated.