1. FEDERAL CORPORATE TAX
| Tax Type | Rate | Notes |
|---|---|---|
| Federal Corporate Income Tax | 21% | Flat rate since TCJA 2017 |
| Alternative Minimum Tax (AMT) | 15% | For corps with avg. income >$1B |
| Accumulated Earnings Tax | 20% | On excessive retained earnings |
Double Taxation: C-Corps pay tax at corporate level (21%), then shareholders pay tax on dividends (15-20% qualified dividend rate).
2. STATE TAXES
| State | Corporate Tax Rate | Franchise Tax |
|---|---|---|
| Delaware | 8.7% | $175 - $200,000+ |
| California | 8.84% | $800 minimum |
| Texas | 0% | Margin Tax 0.375-0.75% |
| Nevada | 0% | $500+ |
3. QUARTERLY ESTIMATED TAXES
Due Dates for Form 1120-W:
- Q1: April 15
- Q2: June 15
- Q3: September 15
- Q4: December 15
Penalty avoidance: Pay at least 100% of prior year tax or 100% of current year tax.
4. ANNUAL FILING REQUIREMENTS
Form 1120 - Corporate Income Tax Return (Due: April 15)
Form 1120-W - Quarterly Estimated Tax
Form 941 - Quarterly Payroll Tax
Form W-2 - Employee Wage Statements (Due: January 31)
Form 1099 - Contractor Payments (Due: January 31)
Delaware Annual Report (Due: March 1)
State Tax Returns (varies by state)
5. TAX DEDUCTIONS FOR SOFTWARE/AI COMPANIES
- R&D Tax Credit (Section 41): Up to 20% of qualified research expenses
- Section 174: R&D expenses must be amortized over 5 years (domestic)
- Section 179: Immediate expensing of equipment up to $1.16M
- Qualified Business Income (QBI): Not applicable to C-Corps
- Software Development: Can capitalize or expense
6. INTERNATIONAL TAX (GILTI/FDII)
- GILTI: 10.5% tax on Global Intangible Low-Taxed Income
- FDII: 13.125% rate on Foreign-Derived Intangible Income (incentive for exports)
- BEAT: Base Erosion and Anti-Abuse Tax (large multinationals)
7. KEY DEADLINES 2025
| Date | Deadline |
|---|---|
| January 31, 2025 | W-2s and 1099s due |
| March 1, 2025 | Delaware Annual Report |
| April 15, 2025 | Form 1120 (or extension) |
| October 15, 2025 | Extended Form 1120 due |