Delaware Franchise Tax Calculator
LLCs pay a flat $300. Corporations can pay the lower of two methods. Use the calculator below, then see how the numbers work.
Last updated: June 3, 2026
Every Delaware LLC pays a flat $300, regardless of income or activity. LLCs do not file an annual report. A late payment adds a $200 penalty plus 1.5% monthly interest.
- LLC franchise taxFlat $300/year, due June 1
- LLC annual reportNone — LLCs do not file one
- Corp franchise taxLower of two methods, min $175, max $200,000
- Corp annual report$50, due March 1
- Authorized Shares Method$175 up to 5,000 shares; scales upward
- Assumed Par Value Method$400 per $1,000,000 of capital, min $400
- Late penalty$200 + 1.5%/month + lost good standing
How do I use this franchise tax calculator?
Start by choosing your entity type, because that single choice decides everything. If you have a Delaware limited liability company, the answer is fixed — a flat $300 — and the calculator simply confirms it. There is nothing to optimize, no bracket to fall into, and no method to weigh. If you have a Delaware C-Corp or any stock corporation, the calculator asks for three numbers from your records: total authorized shares (from your certificate of incorporation), total issued shares (shares actually outstanding), and total gross assets (from your federal Form 1120, Schedule L).
Enter those three figures and the tool computes both corporate methods side by side, then highlights the lower one — which is the amount Delaware actually expects you to pay. Treat the output as a planning estimate. The official, penny-exact number is generated by the Delaware Division of Corporations portal when you file, using the same inputs. For a deeper walkthrough of the rules behind these numbers, read the full Delaware franchise tax guide.
Why do Delaware LLCs pay a flat $300?
Delaware deliberately keeps the LLC obligation simple: every domestic LLC owes a flat $300 annual franchise tax, due June 1, regardless of income, assets, members, or activity. A dormant LLC that never opened a bank account owes $300. A thriving agency clearing seven figures owes the same $300. The tax is a privilege fee for being a Delaware entity, not a tax on profit, so the calculator never asks an LLC for revenue or asset figures — they do not change the result.
Crucially, Delaware LLCs do not file an annual report. That is one of the biggest practical advantages of the LLC over the corporation and a frequent point of confusion. There is no report form, no officer or director disclosure, and no separate $50 fee. The single $300 payment is the entire annual state compliance task. This is part of why the LLC remains the default choice for most non-resident founders; see how it fits the wider cost of a Delaware LLC and the full formation process.
How does the Authorized Shares Method work?
The Authorized Shares Method is the first of two corporate calculations, and it depends entirely on how many shares your certificate authorizes — not how many you have issued. The schedule is fixed: $175 for up to 5,000 authorized shares, $250 for 5,001 to 10,000 shares, and then $85 for each additional 10,000 shares or any part of that block. Because it climbs in $85 steps, the number grows quickly for companies that authorized large share pools.
Worked example: a corporation that authorized 100,000 shares pays $250 for the first 10,000, then 9 more blocks of 10,000 (90,000 shares) × $85 = $765, for a total of $1,015. Now scale it up. A startup that authorized 10,000,000 shares — a very common founder default — has the first 10,000 ($250) plus 999 additional blocks × $85 = $84,915, for an Authorized Shares result of roughly $85,165. That eye-watering figure is exactly why so many founders panic when the state notice arrives. It is almost never the real bill, because the second method usually wins. Learn the rule in depth on the Authorized Shares Method page.
| Authorized shares | Authorized Shares Method tax |
|---|---|
| Up to 5,000 | $175 (minimum) |
| 5,001 – 10,000 | $250 |
| 100,000 | $1,015 |
| 1,000,000 | $8,665 |
| 10,000,000 | ≈ $85,165 |
| Capped at | $200,000 maximum |
How does the Assumed Par Value Capital Method work?
The Assumed Par Value Capital Method is the second calculation, and for most startups it is the one you will actually pay. It rewards companies that authorized many shares but hold modest assets. The math runs in three steps. First, compute the assumed par: total gross assets ÷ total issued shares. Second, compute assumed par value capital: assumed par × total authorized shares. Third, charge $400 for every $1,000,000 (or part of a million) of that capital, with a hard floor of $400.
Worked example using the same 10,000,000-share startup: say it has $500,000 in gross assets and 8,000,000 shares issued. Assumed par = $500,000 ÷ 8,000,000 = $0.0625. Assumed par value capital = $0.0625 × 10,000,000 = $625,000. Because that is under $1,000,000, the tax is the $400 minimum. So the same company that looked like an $85,165 bill under the first method actually owes $400. That is the whole point of running both numbers. The full rule, including rounding and no-par edge cases, lives on the Assumed Par Value Method page.
Which method should my corporation pay?
Delaware lets you pay the lower of the two results, and this calculator surfaces both so you can see the gap instantly. The critical thing to know is that the state’s official notice is calculated using the Authorized Shares Method by default. That is the big, frightening number on the postcard. You are not obligated to pay it — you recalculate using the Assumed Par Value Capital Method in the portal, and if it is lower (it usually is for venture-style cap tables), you pay the smaller amount.
A simple rule of thumb: if you authorized a lot of shares (a million or more) and your assets are modest, the Assumed Par Value Method almost always wins, frequently landing on the $400 floor. If you authorized very few shares but hold a large asset base, the Authorized Shares Method can be the cheaper of the two. Never assume — run both. If you are still deciding between an LLC and a corporation entirely, our LLC vs C-Corp decision tool and the LLC vs corp franchise tax comparison walk through the trade-offs.
| Scenario | Authorized Shares | Assumed Par Value | You pay |
|---|---|---|---|
| Startup: 10M authorized, 8M issued, $500K assets | ≈ $85,165 | $400 | $400 |
| Small corp: 1,500 authorized, 1,000 issued, $40K assets | $175 | $400 | $175 |
| Asset-heavy: 5,000 authorized, 5,000 issued, $6M assets | $175 | $2,400 | $175 |
| Growth co: 10M authorized, 9M issued, $20M assets | ≈ $85,165 | ≈ $8,800 | ≈ $8,800 |
What is assumed par value, in plain English?
Assumed par value confuses almost everyone because it sounds like the par value printed on a stock certificate — but it is not the same thing. Delaware ignores your stated par value and instead computes its own per-share figure: your total gross assets divided by your total issued shares. If a company has $1,000,000 in assets and 10,000,000 issued shares, its assumed par is $0.10 per share. The state then pretends every authorized share is worth that much, multiplies by all authorized shares, and taxes the resulting capital.
The practical takeaway is that two levers move your Assumed Par Value bill: your gross assets (higher assets push the tax up) and your issued share count (more issued shares push the assumed par — and thus the tax — down). This is why a well-funded company that has issued few shares can see a surprisingly large Assumed Par Value number, and why the calculator asks for issued shares separately from authorized shares. Getting these two figures right is the single most common place founders make a mistake; if you are unsure which numbers to use, a specialist at DelawareLLC.co can confirm them from your filings.
When is the Delaware franchise tax due — June 1 or March 1?
The deadline depends on your entity type, and mixing them up is a costly mistake. Delaware LLCs pay by June 1 every year — the flat $300, with no report. Delaware corporations pay by March 1 every year — their franchise tax (lower of the two methods) plus the $50 annual report fee, and they must actually file the report, not just send money. The two dates are three months apart for a reason: Delaware separates the simpler LLC obligation from the report-bearing corporate one.
Because the corporate deadline comes first and carries a filing requirement, corporations should start gathering gross-asset and issued-share numbers in January. LLC owners have an easier job — the amount never changes — but the June 1 date still slips past people every year. We send reminders ahead of both deadlines and can file on your behalf. For the calendar in full, including first-year proration nuances, see the franchise tax deadlines page and the broader Delaware annual report guide.
What happens if I pay late?
Late payment is expensive and it compounds. For both LLCs and corporations, Delaware adds a $200 penalty the moment you miss the deadline, then charges 1.5% interest per month on the unpaid balance until everything is settled. On a $300 LLC tax, that turns a routine bill into $500-plus within the first month, growing every month it stays unpaid. The penalty does not scale down for small entities — a one-member LLC pays the same $200 as anyone else.
The bigger problem is loss of good standing. An entity that is delinquent on franchise tax cannot obtain a certificate of good standing, which banks, payment processors, and investors routinely request. Stripe payouts can stall, a Mercury account review can freeze activity, and any financing or acquisition due diligence will surface the delinquency. Restoring good standing means paying the full tax, the $200 penalty, and all accrued interest. Read more on the franchise tax late fee page.
How do I actually pay the Delaware franchise tax?
The process is the same portal-based flow for both entity types, with one extra step for corporations. First, go to the Delaware Division of Corporations online filing portal and look up your entity by its file number (printed on your formation documents). Second, the system shows your tax due — for a corporation it defaults to the Authorized Shares Method, so this is where you switch to the Assumed Par Value calculation and enter your gross assets and issued shares to get the lower number. Third, corporations complete the annual report fields (officers, directors, registered agent); LLCs skip this entirely.
Fourth, pay by card or ACH and save the confirmation. That confirmation is your proof of good standing for the year. If you would rather not touch the portal at all, DelawareLLC.co files and pays for you as part of ongoing support — most clients simply confirm their numbers over WhatsApp and we handle the filing before the deadline. You can also pay the right way the first time by understanding the rules through our franchise tax guide and transparent pricing.
How does the LLC $300 compare to the corporation tax?
For most non-resident founders, the LLC is dramatically simpler and cheaper to keep alive. The LLC pays a flat $300 with no report and no method to calculate. A corporation pays the lower of two methods (minimum $175, but usually landing near the $400 Assumed Par Value floor for startups) plus a $50 annual report fee, and it must file that report. So a typical small corporation’s floor is about $225–$450, versus the LLC’s fixed $300 — and the corporation carries more annual paperwork.
That said, the choice is rarely about the franchise tax alone. Founders raising venture capital are usually steered toward a C-Corp regardless of the tax, because investors require it. Founders running an agency, e-commerce store, or SaaS without institutional funding almost always prefer the LLC. The franchise tax is a small input into that decision — weigh it alongside taxation, ownership, and fundraising using our LLC vs corp tax breakdown and the decision quiz.
| Delaware LLC | Delaware corporation | |
|---|---|---|
| Franchise tax | Flat $300 | Lower of two methods (min $175) |
| Annual report | None | Required, $50 fee |
| Deadline | June 1 | March 1 |
| Method to choose | No | Yes — Authorized Shares vs Assumed Par Value |
| Typical small-entity floor | $300 | ≈ $225–$450 |
| Maximum | $300 | $200,000 |
What does Year 2 and beyond actually cost?
The franchise tax is only one line in your ongoing cost. For a Delaware LLC, the realistic annual total from Year 2 onward is roughly $399: the $300 franchise tax plus about $99 for the registered agent, which Delaware law requires every entity to maintain. There are no hidden state fees beyond that for a standard LLC — no report fee, no minimum income tax at the Delaware level for an LLC taxed as a pass-through.
Your first year is different because formation costs are bundled. DelawareLLC.co charges $397 all-inclusive, which already covers the Delaware $110 state filing fee and your first year of registered agent service, so the $300 franchise tax does not come due until the following June 1. After that, you are in the steady-state ~$399/year rhythm. See the line-by-line breakdown on the Delaware LLC cost page and our pricing page, or model your full multi-year spend with the total cost calculator.
What are the most common franchise tax mistakes?
Five mistakes account for most of the franchise tax pain we see. First, paying the scary Authorized Shares number when the Assumed Par Value Method would have produced the $400 minimum — potentially overpaying by tens of thousands of dollars. Second, confusing the LLC June 1 deadline with the corporate March 1 deadline, which triggers the $200 penalty. Third, entering issued shares where authorized shares belong (or vice versa) in the portal, which produces a wrong — and usually higher — bill.
Fourth, assuming a dormant or pre-revenue entity owes nothing; Delaware charges the full tax even with zero activity, and ignoring the notice just adds penalties. Fifth, letting the registered agent lapse, which means the state notice never reaches you and the first you hear of a problem is a frozen bank account. Each of these is avoidable. Using this calculator before you file catches the first and third; calendar reminders catch the second; and keeping your registered agent current — included free in your first year with us — catches the fifth.
How do I read the calculator’s output?
When you run a corporation through the tool, it returns three things, and reading them correctly saves you money. The first line is your Authorized Shares Method result — this is the number Delaware prints on your official notice, so it is the figure you will recognize from the mail. The second line is your Assumed Par Value Capital Method result, computed from the gross-asset and issued-share figures you entered. The third line — the one that matters — is the lower of the two, clearly marked as the amount you should actually pay.
If the two numbers are wildly different (say $85,000 versus $400), that is normal and expected for a startup cap table; it simply means you should file using the Assumed Par Value Method in the portal rather than accepting the default. If the two numbers are close, double-check your inputs — a tiny issued-share count or an unusually large asset figure can inflate the Assumed Par Value result. A result that lands exactly on $175, $400, or $200,000 means you have hit a floor or the cap, not an error. When in doubt, the full franchise tax guide explains each line, or a specialist can confirm your numbers before you file.
Do non-residents owe the same Delaware franchise tax?
Yes — franchise tax is identical for residents and non-residents, because it is a fee for being a Delaware entity, not a tax on where the owner lives. A founder in Lagos, Karachi, São Paulo, or Manila who owns a Delaware LLC owes the same flat $300 by June 1 as a founder in New York. Citizenship, immigration status, and the absence of a US Social Security Number make no difference to the franchise tax at all. This is one of the reasons Delaware remains popular for non-resident founders: the recurring state cost is small, fixed, and predictable.
What does differ for non-residents are the federal obligations that sit alongside the franchise tax — most notably Form 5472 for a foreign-owned single-member LLC, which carries its own steep penalties if missed. Those are separate from the $300 and are not part of this calculator. Keeping the franchise tax current is the easy part; pairing it with the right federal filings is where a specialist earns their keep. Our country guides for India, Pakistan, and others cover the full picture.
How does DelawareLLC.co handle franchise tax for you?
Franchise tax is exactly the kind of recurring task that quietly becomes a crisis for busy founders, especially non-residents in a different timezone who never see the mailed notice. Your formation includes the first-year registered agent, so the official deadline reminders come through us rather than getting lost. Before June 1 (for LLCs) or March 1 (for corporations), we flag the upcoming deadline, confirm your numbers, and can file and pay on your behalf — for a corporation, we run both methods so you pay the lower one.
Pricing stays transparent: $397 all-inclusive to form (state fee and first-year agent included), then roughly $399/year ongoing for an LLC. Support runs over WhatsApp, and the filing and EIN steps carry a money-back guarantee. If you are forming elsewhere, our sister services can help too — wyomingllc.co for a Wyoming entity, ein.so for a federal EIN without an SSN, and itin.so for an ITIN. To get started, see how it works or compare structures with the Delaware vs Wyoming LLC guide.
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