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/ Free interactive calculator · Updated for 2026

Delaware Franchise Tax Calculator. Both methods, side-by-side.

Delaware's own online calculator defaults to the Authorized Shares Method and overcharges almost every startup by a four- or five-figure amount. This calculator shows both methods, highlights the lower one, and explains why.

Your numbers

Any field you don't know yet — use the defaults. Most seed-stage Delaware C-Corps use the "VC-ready template" preset.

Quick presets

Standard VC-friendly template is 10,000,000. Check your Certificate of Incorporation if unsure.
Issued to founders, employees (post-exercise), investors. Not the full option pool — just actually-issued stock.
$
From your year-end balance sheet. For pre-revenue startups, this is roughly cash + prepaid expenses + any IP capitalised. Use USD 1 if you have nothing material yet — the minimum tax applies either way.
$
Delaware standard is $0.0001. Only change if your Certificate of Incorporation says otherwise.

Your Delaware franchise tax

For the current tax year. Both methods calculated under the Delaware Division of Corporations' published formulas. You pay the lower.

/ Method A — Authorized Shares
$0
Based purely on authorized share count.
/ Method B — Assumed Par Value
$0
Uses gross assets & issued shares to derive an assumed par value.
/ What you'd overpay using the wrong method
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Have us file it → Full US incorporation help

/ The $85,000 trap

Why Delaware's default calculator overcharges almost every startup.

When Delaware mails your first annual franchise tax notice, it uses the Authorized Shares Method because it's the simpler default. For the VC-friendly standard template of 10,000,000 authorized shares, that notice reads around $85,165. Founders panic. Most pay it.

They shouldn't. Delaware law gives you a second method — the Assumed Par Value Method — and you can elect it on the annual report. For the same pre-revenue startup, the correct tax is almost always $400 + $50 report fee = $450. Difference: around $84,700 per year.

Every Indian, LatAm, European and otherwise-foreign founder with a Delaware C-Corp hits this. The fix is simple: file the annual report with the Assumed Par Value Method figures, pay the lower bill, do it again next year. The hard part is knowing it exists.

/ The math

How each method actually calculates.

Method A — Authorized Shares. Simple step function on authorized share count only:

  • 1 – 5,000 shares: $175 flat.
  • 5,001 – 10,000 shares: $250 flat.
  • 10,001+ shares: $250 + $85 per additional 10,000 shares (or part thereof) above 10,000.
  • Max cap: $200,000.

For 10,000,000 authorized shares that's $250 + (999 × $85) = $85,165. Add the $50 report fee: $85,215.

Method B — Assumed Par Value. Uses balance-sheet data:

  1. Calculate assumed par value: gross assets ÷ issued shares (floor of $0.0001).
  2. Calculate assumed par value capital: authorized shares × assumed par value.
  3. Tax: $400 per $1,000,000 of capital, with a minimum of $400, cap $200,000.

For 10,000,000 authorized / 5,000,000 issued / $100,000 gross assets: assumed par = $0.02, capital = $200,000, tax = $80, floored to $400 minimum. Plus $50 report fee: $450.

/ FAQ

Common Delaware franchise tax questions.

When is Delaware franchise tax due?
March 1 each year for C-Corps. LLCs pay a flat $300 by June 1. Miss the deadline and penalties start at $200 plus 1.5% monthly interest. Delaware auto-flags your entity as not in good standing after 60 days.
Does Delaware franchise tax apply to foreign-owned C-Corps?
Yes. The tax applies to every Delaware C-Corp regardless of where its owners live or where it does business. An Indian founder with a Delaware C-Corp operating entirely from India still pays Delaware franchise tax annually by March 1. The same two calculation methods apply.
What is the minimum Delaware franchise tax?
$400 for C-Corps under the Assumed Par Value Method, plus $50 annual report fee, for a $450 effective floor. $175 is the floor under the Authorized Shares Method but almost always higher once you have more than 5,000 authorized shares. LLCs pay a flat $300 annually (no report required).
What are "gross assets" for the Assumed Par Value Method?
Total assets as reported on your year-end balance sheet in your federal Form 1120 (US tax return) — the same figure. For pre-revenue startups this is roughly cash + prepaid expenses + any capitalised intangibles. If you're on cash-basis accounting, use the cash position at December 31.
Can I switch methods year-over-year?
Yes. You pick whichever method is lower on each year's annual report. Most startups use Method B (Assumed Par Value) for the first several years, then may switch to Method A once gross assets grow substantially — typically once the company holds $5M+ in cash and has issued most of its authorized stock.
Does BQP file this for me?
Yes — part of our standard US incorporation ongoing-compliance package. We file the annual report, elect the lower method, pay the tax, send you the stamped acknowledgement. If you'd like us to file it as a one-off even if we didn't form your entity, email durgesh@bharatquantumprospera.com — typical fee is USD 150 covering the whole filing.