The two methods, worked line by line

Northwind's charter: 10,000,000 authorized shares at $0.00001 par, 8,000,000 issued to the founders, and $74,292.60 of total assets at September 30, used here in place of the year-end Schedule L figure.

The authorized shares methodTaxAuthorized shares methodThe default Delaware franchise tax calculation, from the number of shares the charter authorizes: $175 for 5,000 shares or fewer, $250 for 5,001 to 10,000, and $85 for each further 10,000 or part of 10,000, up to $200,000. It is what Delaware's notice computes, and for a startup with millions of authorized shares it runs to five figures counts the shares the charter permits, the authorized sharesEntity & complianceAuthorized sharesThe number of shares a corporation's certificate of incorporation permits it to issue — the ceiling, not what anyone holds. Issued shares are those actually sold or granted; the authorized shares method of the Delaware franchise tax counts the ceiling, not the ones anyone holds. $175 for up to 5,000 shares, $250 for up to 10,000, and $85 for every further 10,000 or part of 10,000. This is the figure on the notice Delaware sends.

The assumed par value capital methodTaxAssumed par value capital methodThe alternative Delaware franchise tax calculation: assumed par (total gross assets ÷ issued shares) times authorized shares, taxed at $400 per $1,000,000, minimum $400 — usually far below the authorized shares method for a startup with millions of authorized shares starts from the balance sheet. Divide total gross assets by issued shares to get an "assumed par". Shares whose real par is below it count at the assumed par. Tax that capital at $400 per $1,000,000, with a $400 minimum. Gross assets are the total assets on the federal return's balance sheetStatementsBalance sheetAssets, liabilities and equity at a point in time, proving the accounting equation, Schedule L of Form 1120TaxForm 1120The federal income tax return of a domestic C corporation, filed every year whether or not it has taxable income — due the 15th day of the 4th month after year end, April 15 for a calendar year, with tax at 21% of taxable income under IRC §11(b), which is one reason the franchise tax waits on the closed year.