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Delaware franchise tax par value by share class

A cap-table source guide for Delaware corporations with multiple par-value share classes.

By Yann LephayPublished · Last updated

Summary

Delaware method comparison needs the corporation's authorized shares, issued shares and par value by class. Do not replace charter par value with fair market value, preferred price, 409A value, or a spreadsheet default. No-par stock is outside the supported product lane.

Par value by class is a charter fact, not market value.

Needed by classAuthorized shares, issued shares, par valueSeparate common and preferred where applicable.
Do not use409A or preferred priceThose are not charter par value.
Hard stopNo-par stockOutside Delaware Franchise Desk scope.

Where to find par value

Use the certificate of incorporation, amendments, stock ledger, cap table platform exports, and board-approved equity records. Keep the source document with the annual report checklist.

Example

A corporation has common stock with $0.00001 par value and preferred stock with $0.00001 par value. Those values may look tiny, but they are the method inputs; a $1.00 preferred issue price is not the same field.

When to stop

Stop for no-par shares, missing charter amendments, inconsistent cap table exports, uncertain treasury shares, recapitalizations, mergers, or legal-status questions.

Common questions

Is par value the same as fair market value?

No. Par value is a charter stock fact. Fair market value, 409A value and preferred financing price are different concepts.

What if one class has no par value?

No-par stock is a hard stop for this self-preparation workflow. Use Delaware official guidance or professional help.