4 ms·
It sounds like you might have gotten some bad advice from elsewhere – most new startups with 10 million authorized shares pay a DE franchise tax that is very cl
by swampthing 8y ago
It sounds like you might have gotten some bad advice from elsewhere – most new startups with 10 million authorized shares pay a DE franchise tax that is very close to the minimum (around $400). There are two different ways to calculate franchise tax for DE - the "authorized shares" method and the "assumed par value" method. The letter DE sends out uses the former to estimate your franchise tax, which is usually some huge amount. But when you go to pay your franchise tax, you can just use the "assumed par value" method and pay what is typically a very small amount. I'll shoot you an email on this as well!
- ganeshkrishnan 8y agoThe minimum can be $150 if your shares are less than 5000. If the difference between $400 and $150 is inconsequential then yes it doesn't matter. The advice was from Delaware government customer service.