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    Does my corporation really owe that much money in Delaware Franchise Tax?

    Last updated: October 2, 2015
  Valcu Support

Does my corporation really owe that much money in Delaware Franchise Tax?
Filing your annual report in Delaware and paying your franchise tax can be completed on Delaware's website. For corporations, paying the Delaware franchise tax tends to be a big scare for founders making their first filing, not least because Delaware has two methods of calculating the tax. The method Delaware defaults to often results in an inordinately high tax. The alternative method (Assumed Par Value Capital Method) is based on the assets of the company and the number of shares issued, which Delaware does not know. Be sure to recalculate your tax after you have entered your company's information to get the actual tax required. You can also download a spreadsheet for estimating the tax from Delaware's website.
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