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Running a business in Texas involves more than day-to-day operations, it also requires staying compliant with state regulations. Two key annual requirements every business owner should understand are the Texas Franchise Tax Report and the Public Information Report (PIR). While they may seem routine, these filings are essential to keeping your business in good standing and avoiding unnecessary setbacks. Understanding how they work, who needs to file, and what’s required can make the process far more manageable and help you stay ahead of compliance obligations. What Is the Texas Franchise Tax? Despite its name, the Texas Franchise Tax is not limited to franchise businesses. It is a state tax applied to various types of entities operating in Texas, including limited liability companies, corporations, and partnerships. The tax is calculated based on a business’s margin, using methods outlined by the Texas Comptroller. Even if a business does not owe tax, it may still be required to file a report annually. This makes awareness and proper record-keeping critical for all registered entities. Who Needs to File the Texas Franchise Tax Report? Most business entities registered in Texas are expected to file a Franchise Tax Report each year. These typically include: Sole proprietorships do not file the Texas Franchise Tax Report because they are not separate legal entities from their owners. General partnerships are also typically not required to file, unless they are registered as limited liability partnerships (LLPs) or fall under specific state requirements. Understanding your business structure is essential, as Franchise Tax obligations are determined by how your entity is legally formed and registered in Texas. What Is the Public Information Report (PIR)? In addition to the Franchise Tax Report, many businesses must submit a Public Information Report. This filing provides updated details about the company’s leadership and structure. The PIR generally includes: This information helps maintain transparency and ensures that the state has accurate and up-to-date records for each entity. When Are the Franchise Tax and PIR Due? Both the Franchise Tax Report and the Public Information Report are required annually and are due on May 15 each year. If May 15 falls on a weekend or public holiday, the deadline is extended to the next business day. Businesses are expected to file on time, regardless of whether they owe any tax. Missing deadlines or failing to file can lead to penalties and administrative complications. Filing is typically completed through the Texas Comptroller’s online system, making it easier to submit and track your reports. What Happens If You Don’t File? Non-compliance with these requirements can have serious consequences. Businesses that fail to meet their obligations may face: Maintaining compliance is not just about avoiding penalties it also reinforces your business’s credibility and stability. How Can You Stay Compliant Each Year? Keeping up with annual filings doesn’t have to be stressful. A few practical steps can make a big difference: Being proactive helps ensure your business remains compliant without last-minute pressure. Taxculate Staying on top of the Texas Franchise Tax and Public Information Report is essential for protecting your business and maintaining its legal standing. But managing deadlines, documentation, and reporting requirements can quickly become overwhelming especially as your business grows. That’s where Taxculate makes the difference. Instead of handling everything manually, you can rely on a smarter, more efficient solution designed to simplify your compliance process from start to finish. Don’t leave your filings to chance or risk falling behind. Take control today, choose Taxculate to handle your reports accurately, efficiently, and on time, so you can focus on what truly matters: growing your business.

Not every business venture is meant to last forever. Whether you’re pivoting to a new idea, closing a project that never took off, or moving on to the next chapter, there comes a time when a company must be formally closed. For founders of Delaware corporations, there is a common and dangerous misconception: that you can simply abandon the company and walk away. This can lead to years of accumulating taxes, penalties, and potential legal liabilities. The only way to cleanly and officially end your company’s existence is through a formal dissolution. This guide outlines the proper process for dissolving your Delaware corporation, ensuring a final and compliant closure. Why You Must Formally Dissolve (And Not Just Abandon) Your Corporation Simply ceasing operations and abandoning your corporation is one of the riskiest things a founder can do. Here’s why: The First Step: Getting into Good Standing Before you can close your company, you must first bring it up to date. The State of Delaware will not accept a Certificate of Dissolution unless your corporation is in “good standing.” This means you must file all past-due Annual Reports and pay all outstanding franchise taxes, penalties, and interest in full. The Steps to Formally Dissolve Your Corporation The dissolution process involves both internal corporate actions and official state filings. Step 1: Obtain Board and Shareholder Approval First, the corporation’s board of directors must formally adopt a resolution to dissolve the company. This resolution is then presented to the shareholders for approval, which typically requires a majority vote. These actions must be properly documented in your corporate records (e.g., meeting minutes or a written consent). Step 2: File the Certificate of Dissolution This is the official document that notifies the State of Delaware of your intent to close. You must file a Certificate of Dissolution with the Delaware Division of Corporations. The form is straightforward and requires key information such as your company’s name, date of incorporation, and confirmation that the dissolution was approved by the directors and shareholders. Step 3: Pay Final Franchise Taxes Along with the Certificate of Dissolution, you must pay any franchise taxes that have accrued for the current, partial year. Delaware provides a form to help calculate this final prorated tax amount. Step 4: “Winding Up” the Business Filing for dissolution is the beginning of the end, not the end itself. The corporation now enters a “winding up” period where its directors must: Final Tax and Reporting Obligations Dissolving your legal entity with the state is only half the process. You must also formally close your accounts with the IRS. Taxculate Properly dissolving your corporation is a critical final step in your entrepreneurial journey. At Taxculate, we can guide you through the financial and tax-related aspects of dissolution, ensuring your final tax returns are filed correctly and all compliance loose ends are tied up for a truly clean slate. Find out More

For freelancers, business owners and founders who have businesses with foreign users. Having a payment provider such as Stripe is extremely important to receive payments. Stripe does not currently support businesses registered solely in Nigeria but there are legitimate walk arounds that can help you secure a stripe payment account Use stripe by registering a foreign business You can use Stripe by registering a business in the United States, United Kingdom or Estonia – E residency or any other country supported by Stripe. United States however is the most common and fastest means especially for non-residents. Depending on state of incorporation, business incorporation can be done within 24 hours, EIN obtained within 4-7 business days and a bank account opened with any of the popular digital banks Choose your Entity Type There are several entity options available when registering a U.S Business however, LLCs and Corporation are the most popular options. LLC Business structure is often used by small business owners and freelancers while Corporation structures especially C-corp is used by Venture Backed Start ups who are looking to raise money and have to authorize shares Register a U.S Company. There are 50 States within the U.S within which you can register a business. The most popular Option is Delaware, however, there are other much affordable options like Wyoming, New Mexico, Montana among others. Getting started is easy and simple and can be done here. Get an Employer Identification Number in the U.S An Employer Identification Number is also called the Tax ID or Social Security Number of your Business. The application is made through the Internal Revenue Service Form SS4. This is mandatory for business owners in the United State and required to open a business bank account. Open a U.S Business Bank Account There are several digital banking platforms that allow businesses open a business bank account in the United States. Some of them include Mercury, Bret, Renest among others. The U,s Business registration documentation and EIN will be used as part of the application document to open a USD business bank account. Apply for Stripe using your newly formed company details Creating an account on Stripe is a simple straightforward process, once you have all the required information and documentation. Once the registration process is done, you are ready to start getting paid. Creating your first payment link and invoice is simple and intuitive. Payout for your first payment might not be instant and often takes a couple of days but once you build trust on the platform, payouts will be instant. Taxculate Building a global business often requires the ability accept payment globally. Taxculate can help you get started. Whether you are freelancer or a founder, we help you choose the right entity to meet your business needs and give you the support you need to achieve you business goals

A Delaware Certificate of Good Standing is an official document issued by the Delaware Secretary of State confirming that your business entity is properly registered, compliant with state requirements, and legally authorized to operate. In simple terms, it proves that your company: This document is sometimes also referred to as a Certificate of Status or Certificate of Existence in other states, but in Delaware, the term “Certificate of Good Standing” is standard. Why a Certificate of Good Standing Is Important? A Certificate of Good Standing is more than just a formality—it’s a critical document for running and scaling your business. You may need one in several situations, including: 1. Opening a Business Bank Account Banks often require proof that your company is active and compliant before allowing you to open or maintain a corporate account. 2. Raising Capital or Investor Due Diligence Investors, venture capital firms, and lenders will typically request a Certificate of Good Standing during due diligence to confirm your company is in good legal standing. 3. Expanding to Another State (Foreign Qualification) If you plan to operate outside Delaware, you’ll need to register as a “foreign entity” in another state. A Certificate of Good Standing is almost always required as part of that process. 4. Entering Contracts or Partnerships Large enterprises and government agencies may request this certificate before signing contracts to ensure they are working with a compliant business. 5. Mergers, Acquisitions, or Exit Events During mergers or acquisitions, this document is essential to verify your company’s legal and compliance status. Types of Delaware Certificates of Good Standing Delaware provides two main types of Certificates of Good Standing: Short Form Certificate Long Form Certificate Choosing the right version depends on your use case. For most operational needs, the Short Form is sufficient. Key Considerations Before Requesting a Certificate Before applying for a Delaware Certificate of Good Standing, it’s important to ensure your business meets all compliance requirements. Failing to do so can result in delays, rejection, or additional costs. 1. Franchise Tax Payments Your company must be fully up to date on all Delaware franchise tax obligations. If your taxes are unpaid or filings are incomplete: Pro tip: Always confirm your tax status before applying to avoid unnecessary delays. 2. Registered Agent Requirements Delaware law requires every business entity to maintain a registered agent within the state. A registered agent: If your registered agent resigns (often due to unpaid fees): Keeping your registered agent active and paid is essential for maintaining compliance 3. Processing Time and Urgency Options The Delaware Division of Corporations offers multiple processing speeds for obtaining a certificate: Choosing the right timeline depends on your business needs. If you’re in the middle of a transaction or deadline, expedited service may be worth the additional cost. Common Mistakes to Avoid When applying for a Certificate of Good Standing, businesses often run into avoidable issues: Avoiding these pitfalls can save time, money, and stress—especially when dealing with time-sensitive transactions. Taxculate A Delaware Certificate of Good Standing is a small document with a big impact. Whether you’re raising funds, expanding into new markets, or simply maintaining compliance, having this certificate readily available signals credibility, reliability, and legal integrity. At Taxculate, we simplify the entire process for you—from checking your compliance status and resolving outstanding issues to obtaining your Certificate of Good Standing quickly and efficiently. If you’re unsure about your eligibility or need the certificate urgently, Taxculate can handle it end-to-end so you can stay focused on growing your business.

Wyoming is a popular state for entrepreneurs to form a business, thanks to its simplicity and low annual fees. This same simplicity can sometimes lead founders to a dangerous assumption: that an unused company can simply be abandoned. While failing to file your annual report will eventually lead to the state administratively dissolving your company, this is not a “clean break.” An involuntary dissolution can leave a messy corporate history and potential unresolved liabilities. The proper way to close your chapter is through a formal, voluntary dissolution. This guide outlines the steps to ensure your Wyoming company is closed cleanly, correctly, and finally. Why You Must Formally Dissolve Your Wyoming Company For a company that is no longer needed, formal dissolution is a critical final step for several reasons: The First Step: Get into Good Standing Before you can close your company, you must be up-to-date with the state. The Wyoming Secretary of State will only accept Articles of Dissolution if your company is in “good standing.” This means: The Steps to Formally Dissolve a Wyoming LLC The process in Wyoming is known for being straightforward. Here are the typical steps for an LLC, the most common entity type in the state. Step 1: Obtain Member Approval The dissolution process begins internally. The members of the LLC must agree to dissolve the company, following the voting procedures outlined in your LLC’s Operating Agreement. This official decision should be documented in writing. Step 2: File Articles of Dissolution This is the official filing that notifies the state you are closing the business. Step 3: “Wind Up” the Business Affairs After the state filing, the company enters a “winding up” period. This is the process of closing down the business’s financial life. The members or managers are responsible for: Your Final and Most Important Step: Tax Filings Dissolving your company with the state is the legal step, but your final compliance duty is with the IRS. Taxculate Properly closing a company is a mark of a diligent founder. At Taxculate, we ensure this final, critical stage is handled correctly. We manage the filing of your final federal and state tax returns, helping you close your venture with the confidence that all your financial and compliance obligations have been met.

With its booming economy, talented workforce, and famously favorable business climate, Texas is a top destination for companies looking to expand. But before you can set up shop, hire employees, or open an office, there is a critical legal step every out-of-state company must take: Foreign Qualification. Don’t let the term “foreign” confuse you. In this legal context, it doesn’t mean from another country. It simply means your business was formed outside of Texas. For the thousands of startups incorporated in Delaware, your company is considered a “foreign entity” in the eyes of Texas law. This guide will walk you through what Foreign Qualification is, who needs it, and the steps to get it done. What is Foreign Qualification? Foreign Qualification is the process of registering your out-of-state company with the Texas Secretary of State. By doing so, you obtain a Certificate of Authority, which grants your existing legal entity (e.g., your Delaware C-Corporation or LLC) the official permission to “transact business” within Texas. It does not create a new company. It simply allows your existing one to operate legally and in full compliance within a new state. Who Needs to Foreign Qualify in Texas? The requirement hinges on whether your company is “transacting business” in Texas. While the state statutes don’t provide an exhaustive definition, the rules are generally based on the level and nature of your company’s presence and activities. You will almost certainly need to foreign qualify if you are: Conversely, some activities are generally considered “safe harbor” and do not, by themselves, require qualification. These include selling products to Texas residents via e-commerce from outside the state, holding internal company meetings, or simply having a business bank account in Texas. The Steps to Foreign Qualify in Texas The process is straightforward and involves a few key steps: Step 1: Appoint a Texas Registered Agent Your company must have a registered agent with a physical street address in Texas. This person or entity is designated to receive official legal notices and state correspondence on your company’s behalf. Most out-of-state businesses use a commercial registered agent service for this purpose. Step 2: Obtain a Certificate of Good Standing You must request a Certificate of Good Standing (also known as a Certificate of Existence or Certificate of Fact) from the state where your company was originally incorporated (e.g., Delaware). This document proves that your company is active and compliant in its home state. The certificate must be recent, typically issued within 90 days of your Texas filing. Step 3: File the Application for Registration You will need to complete and file an “Application for Registration of a Foreign Entity” with the Texas Secretary of State. The application requires basic information about your company, including its legal name, date and state of formation, and the details of your Texas registered agent. Life After Qualification: Ongoing Compliance Receiving your Certificate of Authority is the beginning, not the end, of your compliance journey in Texas. Once qualified, your company is subject to state-specific obligations, most notably: Taxculate Expanding your business into Texas is a sign of growth and success. Ensuring you are properly qualified from day one is the key to a smooth and compliant operation. At Taxculate, we help businesses manage the full scope of their state and federal tax and compliance obligations that come with expansion, so you can focus on building your presence in a new market.

Nigerian Founders and Freelancers who have a Delaware registered company often have numerous questions when it comes to staying tax compliant in Delaware. We have heard a lot of these questions and we thought to share a number of responses that help Can a Nigerian Business register a company in Delaware and pay franchise Tax? The simple answer is a resounding Yes. Nigerian founders and entrepreneurs who are looking to tap into the huge potential the United State has to offer in terms of market or funders can register their business or startup in the United States and pay their Delaware Franchise Tax using a service like Taxculate. How do I calculate Delaware franchise tax for an LLC? Freelancers who own their own business often have a Delaware Limited Liability Company. Tax compliance for this type of entity is usually straight forward compared with the Corporations. Business owners can use Taxculator to file and pay for their LLC Franchaise Tax. What Services can help me file Delaware Franchise Tax Online? Taxculate is a simple easy and affordable service that helps founders file taxes across different states including Delaware. Use our product Taxculator for a fast and affordable way to file your taxes online. What is the deadline for Delaware Franchise tax payment? March 1st is the deadline. This is a firm deadline with no extensions whatsoever. Are there any discounts or penalties for Delaware franchise Tax? Delaware offers no discounts on taxes however, there are penalties and interests which accrue if the tax is left unpaid after the March 1st Deadline. What platforms offer Delaware franchise tax filing assistance? Taxculate offers an easy and streamlined way for founders and freelancers to file and pay the tax. How much does it cost to pay Delaware franchise tax through a service? Taxculate charges $100 to file. Step by Step guide to filing Delaware franchise tax for a startup We have a comprehensive step by step guide that takes you through how the tax is assessed, the different filing methods and the relevant calculations involved. available here. Where can I find the official Delaware Franchise tax payment portal? The official Delaware française tax payment portal is available on the Delaware Department of revenue website available here. Are there any apps that tracks Delaware Franchise Tax Deadlines? Taxculate helps founders and freelancers updated on tax deadlines.

So you’ve incorporated your company in Delaware. You’ve joined the ranks of over 68% of Fortune 500 companies and countless startups who choose the state for its flexible, business-friendly corporate laws. While the benefits are clear, incorporation in Delaware comes with a mandatory annual requirement that every founder must address: the Delaware Annual Franchise Tax Report. What is this tax, and how can you ensure you’re calculating it correctly? Let’s break it down. What is the Delaware Franchise Tax? First and foremost, the Delaware Franchise Tax is not a tax on your income or profit. Instead, it’s a fee you pay to the State of Delaware for the privilege of maintaining your company’s incorporation there. Every single company incorporated in Delaware must file and pay this tax every year, regardless of its revenue, profitability, or where it conducts business. Even if your company is pre-revenue or dormant, you are still required to pay. The deadline for corporations is March 1st of each year. The Two Methods of Calculation: A Critical Choice This is where things can get confusing—and potentially expensive if you’re not careful. Delaware provides two different methods for corporations to calculate their franchise tax. You are allowed to calculate your tax using both methods and pay the lesser of the two amounts. For most startups, the difference can be thousands of dollars. Method 1: The Authorized Shares Method (The Default) This is the default method used by the State of Delaware. The calculation is based solely on the number of shares your corporation is authorized to issue. Many startups authorize millions of shares to accommodate investors and employee stock option pools. If you use this default method with, for example, 10,000,000 authorized shares, you could receive a tax bill for over $85,000. This often causes panic, but there is a better way. Method 2: The Assumed Par Value Capital Method (The Founder-Friendly Method) This method is more complex but almost always results in a significantly lower tax liability for startups and early-stage companies. It calculates the tax based on the company’s gross assets and the number of shares that have actually been issued. The calculation involves using your total gross assets (found on your balance sheet) and the total number of issued shares to determine an “assumed par value,” which is then used to calculate the tax. For companies with low gross assets (typical for most startups), this method will almost always result in the minimum tax payment, which is typically **$450** ($450 tax +  annual report fee). While the minimum tax under this method ($400) is higher than the absolute minimum under the Authorized Shares method ($225), it saves founders with a large number of authorized shares from receiving an astronomically high tax bill. Don’t Let a Simple Filing Become a Major Headache Choosing the wrong calculation method can lead to a shocking and unnecessary tax bill. Failing to file by the March 1st deadline results in a $200 late penalty plus 1.5% monthly interest on the outstanding balance. Navigating state tax requirements is one of the many post-incorporation hurdles that can distract you from your core mission. At Taxculate, we handle these complexities for you. We ensure your Delaware Franchise Tax is calculated using the most advantageous method, filed correctly, and paid on time, every time.

Launching a company in the United States is an exciting prospect for entrepreneurs around the globe. While the process of incorporation can be straightforward, navigating your personal obligations within the U.S. tax system is a critical next step. For a non-resident founder without a U.S. Social Security Number (SSN), the key to this process is the ITIN. Understanding what an ITIN is and when you need it is fundamental to staying compliant and successfully operating your U.S. venture. What is an ITIN? An ITIN, or Individual Taxpayer Identification Number, is a nine-digit tax processing number issued by the Internal Revenue Service (IRS). Its sole purpose is to help individuals who are not eligible for an SSN comply with U.S. tax laws. It serves as the identification number for your personal U.S. tax filings and reporting. It’s crucial to understand what an ITIN is not: Think of it simply as your unique ID for all interactions with the U.S. tax system. When Do I Need an ITIN as a Non-Resident Founder? As a founder of a U.S. company, the need for an ITIN is typically triggered by a specific tax-related event. Here are the most common scenarios you will encounter: 1. When You Have a U.S. Personal Tax Filing Requirement This is the most direct reason. You will need an ITIN when you are required to file a U.S. personal income tax return, Form 1040-NR (U.S. Nonresident Alien Income Tax Return). This requirement is often triggered if you: Typically, you apply for your ITIN using Form W-7 at the same time you file your first Form 1040-NR. You cannot file the tax return without a taxpayer identification number. 2. When You Need to Claim a Tax Treaty Benefit Your U.S. company might pay you dividends or other U.S.-sourced income. By default, the U.S. imposes a 30% tax on this type of income for foreign persons, which is withheld before you receive it. However, a tax treaty between the U.S. and your home country may allow for a reduced rate of withholding. To claim these treaty benefits, you will need an ITIN. 3. When Opening a U.S. Business Bank Account While not a direct IRS requirement for an ITIN, this is a common practical hurdle. Many U.S. banks require a personal taxpayer identification number from the foreign beneficial owners of a business account. While the business itself will have an EIN (Employer Identification Number), the bank may still require an ITIN from you as the founder to complete their due diligence. How to Apply for an ITIN The most common way to apply is by submitting Form W-7, Application for IRS Individual Taxpayer Identification Number, along with your completed federal income tax return (e.g., Form 1040-NR). You must also include original or certified copies of documents that prove your foreign status and identity, such as a valid foreign passport. Because the process requires careful attention to detail, many founders choose to work with an IRS-authorized Certifying Acceptance Agent (CAA). A CAA can verify your identity documents, which means you don’t have to mail your original passport to the IRS, and can help ensure the application is completed correctly. Your Bridge to U.S. Tax Compliance For a non-resident founder, obtaining an ITIN is a rite of passage. It signifies that you are officially interacting with the U.S. tax system and are taking the necessary steps to operate in full compliance. At Taxculate, we guide international founders through every step of this process—from identifying the need for an ITIN to preparing the necessary tax returns and applications. We ensure you have the right tools to build your U.S. business on a solid, compliant foundation. Schedule A Call