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Why is my Delaware franchise tax bill so high?

Sales tax & state compliance

Because Delaware defaults to the authorized shares method, which produces an alarming figure for a company with 10,000,000 authorized shares and almost no assets.

Recalculating under the assumed par value capital method usually drops it substantially. You need your issued shares and gross assets to run it.

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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