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If I incorporate my startup in Delaware, will I have to pay myself a salary? There is zero revenue or investment. If I do, does it get taxed?

Hey happy to help here as my company (LawTrades) assists startups with this stuff all the time. As others have hinted, nothing requires you to pay yourself. With c-corps, the business entities file taxes separately from their owners. Owners of a c-corp pay taxes on corporate profits paid to them in the form of salaries, bonuses, and dividends, while any additional profits are awarded a corporate tax rate, usually lower than a personal income tax rate.

Although you don’t have a requirement to pay yourself a salary, there are other annual formalities you must follow as a Delaware c-corp. It’s probably a good idea to have a lawyer do a legal checkup on your company. You can get that done at LawTrades, where we make it cheap and easy for startups to get solid legal advice.


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