Last year, I made the questionable decision to create several C-corps while drunk, just so I could call myself the CEO and CFO of multiple companies. Now I owe $3,000 in Delaware franchise taxes.
None of these companies actually did any business. So, do I need to pay anything federally? Should I just file a bunch of 1120 forms with zero income, or is there more to it?
This might be the funniest story I’ve seen on this forum 
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Jai said:
This might be the funniest story I’ve seen on this forum
Definitely one for the hall of fame here!
Jai said:
This might be the funniest story I’ve seen on this forum
Definitely one for the hall of fame here!
So true.
Tan said:
Jai said:
This might be the funniest story I’ve seen on this forum
Definitely one for the hall of fame here!
So true.
Delaware’s minimum franchise taxes are $175 or $400 depending on the setup. How many companies did you make exactly?
File those 1120 forms as ‘final’ and retire from your CEO career. Now you can say you’re a retired CEO!
I don’t know much about Delaware tax laws, but this story is gold.
Kaius said:
I don’t know much about Delaware tax laws, but this story is gold.
I’m not trying to avoid my responsibilities. I’ve already set up payments for the $3,000. But for federal taxes, can I handle this myself with 1120 forms, or do I need to involve my CPA? It’s honestly pretty embarrassing.
@Blake
Did you get EINs for these companies? Also, did you elect to make them S-corps (1120S)? That’s a lot of work to do while drunk—you might have missed your calling as a tax pro!
Zeke said:
@Blake
Did you get EINs for these companies? Also, did you elect to make them S-corps (1120S)? That’s a lot of work to do while drunk—you might have missed your calling as a tax pro!
Is an EIN the same as an FEIN? I have those numbers for each corporation. I just want to clean up this mess without looking too dumb in front of my CPA.
@Blake
Yep, EIN and FEIN are the same. The IRS will expect an 1120 form for each. Maybe you could combine them as subsidiaries of one main corporation and file just one return.
Zeke said:
@Blake
Yep, EIN and FEIN are the same. The IRS will expect an 1120 form for each. Maybe you could combine them as subsidiaries of one main corporation and file just one return.
Thanks for the tip. I’ll ask my CPA about it. Lesson learned—don’t drink and start businesses.
@Blake
If you did this online, you must’ve been on a serious binge—one EIN per day max. Laughing just imagining this scenario.
Alright, let’s be real—who hasn’t drunkenly created a bunch of corporations before? You’ll need to file those 1120s with zero income.
Eli said:
Alright, let’s be real—who hasn’t drunkenly created a bunch of corporations before? You’ll need to file those 1120s with zero income.
It’s almost a rite of passage at this point.
I’ll buy one of your companies for $1, and then you can say you successfully sold a business!
Dane said:
I’ll buy one of your companies for $1, and then you can say you successfully sold a business!
I’ll go $1.50—bidding war time.
This version of ‘morning after’ is next level. Creative, though!
Watch out for Beneficial Ownership reporting (BOI). If the rules get enforced again, you’ll have to file for all those corporations.
Delaware’s tax depends on your stock structure. Look into their Assumed Par Value Capital Method—it might reduce your costs to $400–450 per corporation.