Emerging Enterprise Center Blog - Commentary and Analysis For Entrepreneurs and Startups

That annual statement from Delaware is always a heart stopping experience. Clients often get statements indicating a franchise tax bill in the many tens of thousands. This is because when Delaware sends out their invoice, they calculate the amount owed based upon the number of shares authorized. But, there is an alternative calculation based upon gross asset value, that is very likely to lead to a much lower number. Below is what the Delaware Secretary of State has to say about calculating franchise tax. HOW TO CALCULATE FRANCHISE TAXES   A domestic stock for profit corporation incorporated in the State of Delaware is required... More