Delaware Franchise Tax
Authorized shares vs assumed par value — pick the cheaper.
Cap: $200,000. Filing deadline: March 1 each year. Default-to-cheaper method — most startups overpay by using "Authorized shares".
Ask anything about your result
The math above is deterministic. AI explains what it means — it never recalculates the numbers.
About
Delaware lets corporations choose the cheaper of two franchise-tax calculations. Most startups overpay by accepting the default 'authorized shares' bill — this tool computes both and tells you which to file.
How it works
- 01Authorized Shares method: $175 for ≤5,000 shares, $250 for ≤10,000, plus $85 per additional 10,000 — capped at $200,000.
- 02Assumed Par Value method: based on gross assets and issued shares — typically much lower for startups with high authorized counts.
- 03You owe the lower of the two, plus a $50 annual report fee.
Examples
Typical seed startup
10M authorized shares, 8M issued, $0.0001 par, $2M gross assets. Authorized method = ~$85k. Assumed par method = $400. Savings: $84.6k.
Pre-revenue C-corp
Same authorized shares, no revenue, $50k cash. Assumed par method still wins. Always compute both — Delaware bills authorized by default.