united-states corporate-law corporate-tax-laws delaware investment
Do startups pay taxes on venture funds?
<p>The corporate tax rate in Delaware is 8.7%. The federal corporate tax rate, which startups likely don't have the faculties to avoid paying, is 21%. If I'm a startup incorporated in Delaware, and I raise $100,000 on a $1,000,000 valuation, do I have to send $29,700 of that to the IRS and Delaware Department of Revenue?</p>

<p>No.</p>
<p>Tax is paid on <em>profits</em>, not on investments / venture funds.</p>
