So the Delaware franchise tax is calculated based on the authorized shares of the company or value of the shares, whichever is higher. You end up being taxed on the value of $100 (10,000,000 shares x $0.00001) including incorporation fees. You usually set up a company with 10,000,000 shares and $0.00001 par value. Well, this might be true, but it complicates the process.ĭelaware fees seem to be low. ![]() ![]() However, there is a stigma why people think of setting up a company in Delaware as the startup scene dictates that this is the standard. Startups usually choose to set up a Delaware entity because many of the companies will ask to do so.
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