# Delaware franchise tax

> Delaware franchise tax — The annual tax every Delaware corporation owes for the privilege of being incorporated there, whether or not it does business or makes money there — the lower of the authorized shares method and the assumed par value capital method, minimum $175 or $400, maximum $200,000, due with a $50 annual report by March 1 and prorated in the first year.

Source: https://lopifi.com/glossary/delaware-franchise-tax
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is delaware franchise tax?** In accounting, delaware franchise tax means the annual tax every Delaware corporation owes for the privilege of being incorporated there, whether or not it does business or makes money there — the lower of the authorized shares method and the assumed par value capital method, minimum $175 or $400, maximum $200,000, due with a $50 annual report by March 1 and prorated in the first year.

## Words this system refuses for it

- income tax
- the notice amount (computed on authorized shares only)

- **Category:** Entity & compliance
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** assumed-par-value-capital-method, authorized-shares-method, authorized-shares, par-value