Tax & Compliance
Delaware Franchise Tax
Collated by Aparna Devalla, CPA
Curated by Rubric Financial
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Why Most Startups Incorporate in Delaware
- Delaware's Court of Chancery specializes in business law, providing a well-established and predictable legal framework for corporate disputes.
- Most VC term sheets and institutional investors require Delaware C-Corp incorporation as a standard condition for investment.
- Delaware law offers flexible governance provisions, including the ability to have staggered boards, different share classes, and broad indemnification protections.
- The Delaware General Corporation Law (DGCL) is regularly updated to address modern corporate needs and is well understood by startup attorneys.
Related Resources
Tax & Compliance
R&D Tax Credits for Startups
Discover how your startup can claim R&D tax credits to offset payroll taxes or reduce income tax liability by up to $500K per year.
Tax & ComplianceYear-End Financial Checklist
A comprehensive checklist for closing out your startup's fiscal year — covering tax planning, W-2/1099 filings, reconciliations, and Delaware franchise tax.
Tax & ComplianceWhen to Transition Your LLC to an S-Corp
How electing S-corp status can reduce self-employment taxes for profitable startups — and when the transition makes financial sense.
