Incorporated in DE, not doing business there

[BulldogTom]

TP formed a DE corporation cause the interwebby told him it was a good Idea.   Is completely based in CA.   I see that he has to pay a franchise tax to DE for the privilege of incorporating in the state.  But I don't think they have to file a DE 1100 because they are "not doing business" in DE and the income tax is based on the apportionment to DE from the Federal 1120.

Do I have this correct?

Thanks

Tom
Modesto, CA

[jklcpa]

Correct. No filing requirement if no business in DE.

 

[BulldogTom]

Thanks

Tom
Modesto, CA

[Edsel]

I've been told lawyers advise corporations to incorporate in Delaware.  I've often wondered why.  I don't see any tax advantages.  Are there legal reasons??

[Abby Normal]

8 hours ago, Edsel said:

I've been told lawyers advise corporations to incorporate in Delaware.  I've often wondered why.  I don't see any tax advantages.  Are there legal reasons??

Delaware has favorable (lax) laws for big corporations, but there's no need for most of our clients.