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US Legal Forms offers a wide variety of form templates, including the Delaware Price Setting Worksheet, designed to satisfy state and federal regulations.
The minimum tax is $175.00 for corporations using the Authorized Shares method and a minimum tax of $400.00 for corporations using the Assumed Par Value Capital Method. All corporations using either method will have a maximum tax of $200.000.
Total Gross Assets shall be those total assets reported on the IRS Form 1120, Schedule L relative to the company's fiscal year ending the calendar year of the report. The tax rate under this method is $400 per million or portion of a million.
The state calculates its franchise tax based on a company's margin which is computed in one of four ways: Total revenue multiplied by 70% Total revenue minus cost of goods sold (COGS) Total revenue minus compensation paid to all personnel.
There are ways to reduce your Delaware franchise costs in certain circumstances. To reduce the taxes paid by a startup, use the Assumed Par Value method. This method calculates the taxes by total assets. As long as your issued shares constitute a third to half of your authorized shares, this method will save you money.
A company's income is not a factor in the calculation of Delaware Franchise Tax. Even companies with no business activity must file the annual report and pay franchise tax to maintain good standing status.
Go to the website for the Delaware Division of Corporations and click on the button under the heading "File Your Annual Report and Pay Business Taxes." Enter the SCC file number from your previous report. Click through the report and change the necessary information.
Delaware's default method of calculating annual franchise tax is based only on how many shares a Company has authorized in its charter: 5,000 shares or less (minimum tax) $175.00. 5,001 10,000 shares $250.00. Each additional 10,000 shares or portion thereof add $85.00.
Delaware's default method of calculating annual franchise tax is based only on how many shares a Company has authorized in its charter:5,000 shares or less (minimum tax) $175.00.5,001 10,000 shares $250.00.Each additional 10,000 shares or portion thereof add $85.00.Maximum annual tax is $200,000.00.