Delaware franchise tax calculation help

I performed a focused web search for authoritative, state-specific guidance on Delaware franchise tax calculation and compliance (Delaware Division of Corporations pages, Delaware Division of Revenue, and reputable secondary guidance). Below is a concise summary of the research steps, analysis, and all relevant information needed to prepare comprehensive content for Delaware franchise tax calculation help (suitable for U.S. business owners and LLC founders). This summary is intended to capture the legal rules, practical calculation methods, filing requirements, penalties, and authoritative references needed to create the final blog and newsletter content. Research steps taken - Queried Delaware Division of Corporations pages for official franchise tax calculation rules, the franchise tax calculator/disclaimer, and filing/penalty rules. - Queried Delaware Division of Revenue for confirmation of due dates, application of the franchise tax, and information on LLC/LP/GP taxes. - Collected a reputable secondary guide (Commenda) that synthesizes common pitfalls and practical filing tips. Key authoritative findings (summary) - Who must file and pay: All corporations incorporated in Delaware (domestic stock and non-stock for-profit corporations) must file an Annual Report and pay franchise tax; exempt domestic corporations still must file an Annual Report. Delaware LLCs, LPs, and general partnerships do not file the corporate Annual Report but must pay an annual flat tax. - Due dates and filing method: - Corporations: Annual Report and franchise tax are due on or before March 1 each year and must be filed online through the Delaware Division of Corporations portal. - Estimated payments: Corporations owing $5,000 or more must make estimated payments: 40% due June 1, 20% due September 1, 20% due December 1, and balance due March 1. - LLCs/LPs/GPs: Annual tax (flat $300) due on or before June 1. - Calculation methods for corporations (choose the lesser of two methods): 1) Authorized Shares Method (simple, based on total authorized shares): - 5,000 shares or less: $175 (minimum) - 5,001–10,000 shares: $250 - Each additional 10,000 shares or portion thereof adds $85 - Maximum tax: $200,000 (standard); Large Corporate Filers: $250,000 2) Assumed Par Value Capital Method (requires issued shares and total gross assets per U.S. Form 1120 Schedule L): - Compute assumed par = (Total gross assets) / (Total issued shares) to 6 decimals. - Multiply assumed par by the number of authorized shares with par less than assumed par; for authorized shares with par greater than assumed par multiply by their par value; sum to get assumed par value capital. - Tax = $400 per $1,000,000 (or portion thereof) of assumed par value capital (round up to next million if over $1,000,000). - Minimum tax under this method is $400; maximums same as above. - Delaware recommends calculating tax under both methods and choosing the lesser. - The Division provides a downloadable calculator for estimating (not a legal binding assessment) and a disclaimer: the online calculator is for stock with par value and for estimating only — final amounts are those reported and assessed. - If stock/par value changed during year, prorate by days the stock/par value was in effect and sum prorated taxes for each portion of the year. - LLC/LP/GP tax: These entities pay a $300 annual tax due June 1. Late payment penalty $200 and interest accrues at 1.5% per month. - Penalties and interest: - Late corporate Annual Report filing penalty: $200.00 plus interest at 1.5% per month on tax and penalty. - Late LLC/LP/GP tax penalty: $200.00 plus interest at 1.5% per month. - A corporation failing to pay risks losing good standing/being void; reinstatement requires payment of back taxes, penalties and interest. - Filing fees and administrative details: - Annual report filing fee for non-exempt domestic corporations: $50.00 (exempt corps $25). - Payment methods accepted online: credit card (Visa, MasterCard, AMEX, Discover) and ACH. - The Division of Corporations mails Annual Franchise Tax Notification to the registered agent; all filings must be electronic. - Practical tips collected from authoritative and practitioner guidance: - Calculate both methods each year (Authorized Shares often penalizes high-authorized-share startups; assumed par value can be much lower for companies with many authorized but few issued shares and significant assets). - File at least 1–2 weeks early to avoid last-minute issues. - Keep accurate share and balance sheet records (Schedule L) to support the Assumed Par Value calculation. - After raising capital or amending authorized shares/par value, recalc and, if applicable, prorate taxes for the portions of the year. - Save confirmation receipts and the filed Annual Report; maintain them for due diligence and reinstatement risk mitigation. Authoritative sources to cite (state sites prioritized): - Delaware Division of Corporations — Annual Report and Tax Instructions / paytaxes page: https://corp.delaware.gov/paytaxes/ - Delaware Division of Corporations — How to Calculate Franchise Taxes: https://corp.delaware.gov/frtaxcalc/ - Delaware Division of Corporations — Franchise Tax Calculator disclaimer: https://corp.delaware.gov/taxcalc/ - Delaware Department of Revenue — Franchise Taxes summary: https://revenue.delaware.gov/business-tax-forms/franchise-taxes/ - Practical guide for founders/companies (secondary): Commenda guide on How to Pay Delaware Franchise Tax: https://www.commenda.io/compliance/how-to-pay-delaware-franchise-tax/ Notes on currency and limits: All numeric thresholds, minimums, maximums, due dates, and rates were taken from the cited Delaware state webpages and are current as shown in the scraped pages (scrape dates range late 2025—early 2026). When you convert this research into final blog or newsletter content, I recommend adding a short “check current rules” note and linking to the Division of Corporations pages above because legislative or administrative updates can change rates or procedures. Conclusion / next step recommendation - I have gathered sufficient authoritative material to generate the requested comprehensive blog content, including state-specific details for Delaware, compliance guidance, practical examples, and filing instructions for US business owners/LLC founders. If you want, I will now generate the full blog post (with examples and step-by-step calculation walk-throughs), a short newsletter draft using the subject line you provided, and an SEO-optimized meta and excerpt using your supplied fields. Please confirm and indicate if you want sample numeric examples (a simple startup with many authorized shares, and an example using Assumed Par Value with issued shares and assets) and whether to include downloadable calculator links and a checklist for filings.