How I Made $0 but spent $1k+ On Taxes + Closing Fees

Firstly, let me start off by saying that I am absolutely clueless when it comes to personal taxes, let alone corporate / business taxes.

Secondly... here's the story.

My previous failed startup (you can read more on that in my previous posts), made $0.

I registered the company in Delaware, just like most startup founders that love tax havens.

My address, however, was in California. Why does that matter? Because California has the highest "franchise tax" on Earth (this is not statistically proven...but my bank account says otherwise).

When my startup failed, my defeated soul, and my broken heart logged into Delaware's online tax payment portal. At first, I saw the initial $300 annual tax. "UGH" I thought, and reluctantly payed for it from my savings account.

Then, I saw the $700 CALIFORNIA FRANCHISE TAX and almost had an aneurism. Wow, that's a lot. This is going to hurt. But, I grew up in a "you must always pay your taxes first, you never want issues with the IRS" family, so I paid this off immediately.

Savings account when from :| to :/

I registered my company through Clerky (paid $500 for registration). I asked them how to close down the company, officially. They replied with lots of helpful links and information, letting me know they do not handle this type of service.

I looked through ALL the links and steps I needed to take, and there were a minimum of 10 steps. One of which was filing dissolution paperwork. Again, NO IDEA how to even approach this issue, I looked up a company that can do this for me. Paid $300 there. I thought, ".... the hell with it, at least I'll be done!"

But, was I? NO.

It then said I had to file tax paperwork. WHAT? But I just paid all the possible taxes AND dissolution paperwork?! That was just one part of the process. Remember the 10 steps previously mentioned? Yeah, so we're at step 5.

It becomes clear that you need an accountant for the second part. So, I hired an accountant and filed the rest of the paperwork. This cost me about another $400.

My bank account went from :/ to :((((((

I finally dropped off all of my paper work at the post office. Feeling defeated, angry, and incredibly, utterly stupid.

But wait! There's more.

I started a new company called Recoon. This time, I decided to open up an LLC. Paid $500+ to set up the company. I'll let you know where this one takes me. :)

Hope your year is going better.