Delaware Form 1100

Delaware offers perhaps the most favorable corporate income tax laws in the United States. In fact, most American companies that go public incorporate in Delaware. However, that’s not all Delaware has to offer. It also doesn’t have a sales tax, and it allows business owners to keep private information on ownership. Other states may require businesses to file a list of officers and directors or renew their business license each year, but that’s not the case in Delaware. Corporations in Delaware must pay an 8.7% flat rate on their federal taxable income that is apportioned to the state using a three-factor method. The apportionment factors include wages, property, and sales in the state, as well as a weighted average of each of these factors.

Like the Federal Form 1040, each state provides a core tax return form on which most high-level income and tax calculations are performed. In Delaware, this is Form 1100. Depending on the nature of your business, additional schedules and forms may also be required to create a complete state tax return package. For example, if your business is an S corporation that has elected to be taxed under the IRS’s S election rules, you must file an S-corporation reconciliation and shareholders information return with Form 1150S and pay any applicable taxes using Form 1100-ES. You may also need to make estimated tax payments throughout the year using Form 1100-ES.

In addition, corporations that operate in Delaware are subject to a gross receipts tax based on their total sales and service income. You may need to file a gross receipts tax return along with your corporate income tax return (Form 1100) to calculate your tax liability.

How to File Delaware Form 1100?

Filling out Delaware Form 1100 can be a complex task, especially for businesses that are unfamiliar with Delaware tax laws. Here’s a step-by-step guide to help you through the process:

Gather your documents:

Before you start filling out the form, you’ll need to gather all of the necessary documents, such as:

• Your federal income tax return (Form 1040)
• Your corporation’s financial statements, including your balance sheet and income statement
• Any receipts or documentation for any credits or deductions you are claiming
• Your Delaware business license

How to Complete Delaware Form 1100?

The first page of the form is where you’ll enter basic information about your corporation, such as:

• Your corporation’s name
• Your federal employer identification number (EIN)
• Your tax year
• Your accounting method (e.g., cash, accrual)
• Your Delaware business license number

After entering basic information, you need to complete the following parts:

• SCHEDULE 1 – INTEREST INCOME
• SCHEDULE 2 NON-APPORTIONABLE INCOME ALLOCATED WITHIN AND WITHOUT DELAWARE
• SCHEDULE 3 – APPORTIONMENT PERCENTAGE
  • Schedule 3-A – Gross Receipts Subject to Apportionment
  • Schedule 3-B – Determination of Apportionment Percentage
  • Schedule 3-C – Gross Real and Tangible Personal Property
  • Schedule 3-D – Wages, Salaries, and Other Compensation Paid or Accrued to Employees
  • SCHEDULE 4-A – SUBTRACTIONS
  • SCHEDULE 4-B – ADDITIONS