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DELAWARE FRANCHISE TAX
$

1

Normally  
$199
Lowest tax method
Annual Franchise Tax Report
Taxes Paid

Let Fondo file your Delaware Franchise Tax for you for $1 (normally $199)
or get it FREE when you purchase TaxPass.

1,000+ founders trust Fondo
TRUSTED  BY 1,000+  startups

Saving Startups Millions

The tax bill you receive from Delaware is calculated using the Authorized Shares Method. Startups should use use the Assumed Par Value Capital Method to calculate and pay Delaware Franchise Tax. Fondo will make sure it's done right so you don't over pay Delaware.

Who we are

Since 2020, we have been working on building the best accounting solution for busy founders. Most founders are focused on building and talking to users — so when it comes to accounting they don't want it to slow them down.

Fondo is a team of accountants paired with a software platform to bring you a "done for you" solution. We make it easy for founders to  get their startup's bookkeeping done, taxes filed, and cash back from the IRS (the average startup we support gets $21,000 back each year).  

Fondo is committed the building the best accounting platform for founders to run their startups.

TRUSTED  BY 1,000+ startups backed by

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What founders are saying

Fondo is super helpful for Delaware Franchise Tax highly recommend!
Gauri
CEO & Founder, Instrumentl
Fondo helped me with a tricky Delaware Franchise Tax question in three minutes that my accountant and lawyer could not figure out 👏
Rahil Sondhi
CEO & Founder, PopSQL
Loving Fondo so far! 10x better than my previous accountant experience.
Alex Sands
CEO & Founder, Plasticity

Fondo makes it simple.

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Filed!

BONUS: How is it calculated?

The Delaware Annual Franchise Tax assessment is based on the authorized shares of your company.  Here is how the tax is calculated.

Sign up below to get the Delaware Franchise Tax Calculator so you can see an estimate of how much you will owe Delaware for your 2022 Annual Franchise Tax.

Authorized Share Method vs.
Assumed Par Value Capital Method
Startup can choose the method that results in lesser tax
Total will never be less than $175 or more than $200k

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FAQ
Delaware Franchise Tax

Do I need to file Delaware Franchise Tax?

If you incorporated in Delaware, yes, you need to file and pay the Delaware Franchise Tax. Startups are required to file even if you had no financial activity during the year.

When do I need to file the Delaware Franchise Tax?

By March 1, 2022. If you miss the deadline, we can still do a late filing for you: sign up for TaxPass.

What Method Should I Use?

Delaware allows you to use the method that results in the lesser tax. Most startups use the Assumed Par Value Capital Method.

How much should I expect to pay?

Most startups owe a Delaware Franchise Tax amount of $450.00 - $10,000.00. If you've received a bill for $50,000.00+, its because Delaware has calculated your tax using the Authorized Shares Method. Don't be alarmed, you can pay the tax amount based on the method that results in the lesser tax - in most cases this is the Assumed Par Value Capital Method. If you need assistance with this, we'd love to help. Learn more here.

What is par value?

Par value is the value per share. Generally, the par value is usually set at $0.0001 or $0.00001. The par value has no connection to the market value of shares.

What are my gross assets?

For startups filing taxes on cash basis (majority of startups), your gross assets as of will include: Cash, Investments (Brokerage/Money Market/Treasury Accounts), Fixed Assets (laptops, etc.), Crypto, Accounts Receivable, Inventory, Real Estate, Investments or Loans to Foreign or Domestic Subsidiaries.

I have more questions. Where can I find answers?

When you sign up for TaxPass you get a dedicated Tax Accountant and shared slack channel. We'd love to help you this tax season. Learn more here.

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