What is the Franchise Tax? Which states are involved?

Delaware-specific franchise tax is also called “tax”, but it is actually calculated based on the registered capital of the company and has nothing to do with the actual revenue of the business. The amount of franchise tax levied by a Delaware C corporation is related to the registered capital of the corporation. (For example, a Delaware corporation with 10005 shares of registered capital will be subject to a franchise tax of $335; a Delaware corporation with 100,000 shares of registered capital will be subject to a franchise tax of $1,015.) The Delaware LLC tax is not related to the registered capital and is fixed at $300. Note: Delaware’s franchise tax rules change frequently, so please check with us before doing business.