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.
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)