Delaware Franchise Tax Calculator

This calculator is designed to estimate your Delaware franchise tax. Caveat: The information on this page intended as general guidance for startups and it doesn’t substitute the need to work with a professional. Your company is unique; contact Kruze Consulting.



ENTER EACH CLASS OF AUTHORIZED SHARES AND THEIR PAR VALUE

Contact Us For a Free Consultation

Answers to Frequently Asked Questions

Q: Do I need to file Delaware Franchise Tax?

A: If you incorporated in Delaware, yes, you need to file and pay the Delaware Franchise Tax.


Q: When do I need to file the Delaware Franchise Tax?

A: February 28th of every year.


Q: Where should I file the DE Franchise Tax?

A: Do it online: https://corp.delaware.gov/paytaxes.shtml


Q: What Method Should I Use?

A: The vast majority of our startups use the Assumed Par Value Capital Method because it results it significantly less tax.


Q: How much should I expect to pay?

A: Most of our startups pay between $400 - $10,000 in DE Franchise taxes. If you've received a bill for $75K, its because Delaware has calculated the tax using the Authorized Shares Method. Don’t freak out; recalculate using the Assumed Par Value Capital Method.


Q: What is par value?

A: Par value is the value per share. From the cap tables we've seen, the par value is usually set at  $0.0001 or $0.00001. The par value has no connection to the market value of the share of stock.


Q: What date should I use to value the Gross Assets?

A: 12/31/XX (most often)