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Why did I get a large Delaware franchise tax bill?

Sales tax & state compliance

Because the state's notice uses the authorized shares method by default, which assumes your 10,000,000 authorized shares are worth taxing at face.

Switching to the assumed par value capital method, using issued shares and gross assets, usually brings it down sharply.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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