This calculator is designed to estimate your Delaware franchise tax.
Vanessa Kruze, CPA
Kruze Consulting
If you incorporated in Delaware, you need to pay a Delaware Franchise Tax. The calculator below will help you estimate how much you’ll need to pay. The deadline is typically the last day of February - scroll down to access links to visit the Delaware Division of Corporations webpage where you can pay.
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.
If you incorporated in Delaware, yes, you need to file and pay the Delaware Franchise Tax.
February 28th of every year.
Do it online: https://corp.delaware.gov/paytaxes.shtml
The vast majority of our startups use the Assumed Par Value Capital Method because it results it significantly less tax.
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.
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.
12/31/XX (most often)
We often get the question, “why should my startup consider incorporating out-of-state and become a Delaware C-corp?”. Here are a few reasons why you would want to initially incorporate in Delaware.
Reasons Venture Capitalists Want Delaware C-Corps:
There are many things you must do after becoming a Delaware C-Corp. Click here to learn more.
Becoming a Delaware C-Corp is simple, but there is a lot of legwork. Our experts here at Kruze are happy to do it for you. Also at Kruze, another option is working with a PEO; that is how you "Incorporate in a state." Hope that helps, thanks.
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