Taxes and filings
Delaware franchise tax
Why the first bill can look huge, and how the cheaper method works.
Delaware corporations pay franchise tax and file an annual report by March 1. Delaware's default bill uses the Authorized Shares method, which can be tens of thousands of dollars for a startup with millions of authorized shares.
The Assumed Par Value Capital method uses your total gross assets and issued shares, and is usually far lower for early companies. Your accountant calculates both and files using the lower one. Delaware LLCs instead pay a flat annual tax due June 1.