The Delaware Franchise Tax is an annual tax paid to the Delaware Department of State by limited partnerships, limited liability companies, or corporations formed under Delaware law. For Corporations, the tax is a minimum of $175 and a maximum of $180,000, and by default it is calculated based on authorized (not issued) shares. Corporations can also elect to calculate their Delaware Franchise tax under the assumed par value method, which usually results in a much lower tax amount (and companies are entitled to pay the lower amount).

Companies must pay these taxes by filing an annual report, which has a small fee. The report can be filed online and is due March 1st of each year.