Delaware franchise tax, both methods at once

Delaware bills every corporation using the Authorized Shares Method by default. For a company with a few million authorized shares and modest assets, that bill routinely runs into tens of thousands of dollars — which is why so many founders open the envelope and assume it is a mistake. It usually is not a mistake, and there is a second method.

Delaware law lets a corporation compute the tax under either method and pay the lower amount. This calculator runs both on the same inputs and shows each result. Which method to use is your decision, not ours.

Authorized shares
Issued shares
Par value per share, $
Total gross assets, $
Authorized Shares Method
$42,665
Assumed Par Value Capital Method
$2,000
Lower of the two$2,000
Difference between methods$40,665
Assumed par value per share$1.000000
Assumed par value capital$5,000,000
Have an LLC, not a corporation?

Delaware LLCs, LPs and GPs pay no franchise tax at all. They pay a flat annual tax with nothing to compute, on a different date.

Delaware LLC tax — the flat amount and the date
What this does not cover

One class of stock. Corporations with several classes compute the Assumed Par Value Capital Method per class, which this calculator does not do. The $200,000 ceiling shown here is the general one; Large Corporate Filers have a higher cap and should check their status.

Formula source: Delaware Division of Corporations — How to Calculate Franchise Taxes
formula checked 2026-08-17 · Free, no sign-up, nothing sent to our servers.
A calculation under a general rule — not legal or tax advice. It cannot see your treaty position, your substance or the exceptions in your own documents. What the calculators are
United States
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