Clear U.S. tax guidance for global founders

The standard federal corporate income tax rate is 21%. State taxes may also apply, and dividends can create a separate shareholder tax charge. Retaining profits for growth does not remove the need to review shareholder, withholding and other applicable rules.

Eligible founders and investors may qualify for a federal capital-gains exclusion on qualifying original-issue stock. Eligibility, holding periods and exclusion limits depend on the stock acquisition date, company assets, business activities and shareholder facts. Review the applicable rules before an investment or exit; do not assume all C-Corporation stock qualifies.

Qualifying startups may elect to apply research credits against eligible employer payroll taxes, subject to the gross-receipts, business-history and credit rules.

For tax years beginning after December 31, 2024, Section 174A generally permits a current deduction for domestic research and experimental expenditures. Alternative capitalization elections and transition provisions require review; foreign research expenditure remains subject to separate treatment. Distinguish research credits from the timing of expense deductions.

Certain qualifying foreign sales and services may benefit from a Section 250 deduction. Eligibility, documentation, taxable-income limitations and the relevant tax year matter. For tax years beginning after 2025, the deduction percentage for qualifying foreign-derived income is generally 33.34%, producing an approximately 14% federal rate before other adjustments. The prior 13.125% headline rate should not be applied universally to current years.

Delaware incorporation does not limit a company’s obligations to Delaware. Remote employees, inventory, business activity and sales can create state connections. Income-tax, franchise-tax and sales-tax rules differ, so review each relevant state and tax type rather than applying one nationwide sales threshold.