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How much tax is paid on exit by a Delaware company?

Since most of the new companies are Delaware companies and significant amount of them plan on exiting, how much tax is paid when the company is sold to another larger company?

Does getting paid by cash/equity make a difference?
Are there other interesting factors we should know about?

Answer 7717

Taxation of a company owned by a foreign person is subject to some very complicated rules, most of which do not apply to US citizens. There are some specific tax and other laws that affect foreign ownership. There are many reporting requirements and tax rules that apply. Foreign ownership of a US company or a foreign company doing business in the US tend to be expensive. Many of the reports and tax returns require a lawyers expertise. You mention Delaware entities. The rules under state law are minuscule compared to federal laws. I recommend that you, as a foreigner, do not attempt to form a US entity without a lot of professional advice. Penalties for not doing the right thing are severe.


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