Cannabis
QSBS Planning for Cannabis Businesses Seeking Stronger After-tax Outcomes
How early structure decisions and ongoing compliance can help cannabis operators exclude millions in federal taxes during business exits.
AAFCPAs would like to make clients aware that all companies incorporated in the state of Delaware are required to file an annual report and pay an annual franchise tax to Delaware each year by March 1st.
We have outlined for your convenience two methods of calculating the franchise tax you owe:
- the authorized shares method, which is based on the number of authorized shares your company has; or
- the assumed par value method, which is based on the value of your company’s assets.
You are only required to pay the lesser of the two, so these calculations are crucial to limiting your tax liability. The maximum annual tax is $250K for “large corporate filers” who have consolidated gross revenue or consolidated assets between $250M and $750M and $200K for the rest.
If you have any questions or need help with these often complex calculations, please contact Kelly Zack, MST at kzack@aafcpa.com, 774.512.4001; or your AAFCPAs Partner.
