Form a Delaware C-Corp for your startup in 2026. Step-by-step incorporation process, $89 filing fee, franchise tax structure, and why 68% of VC-backed startups choose Delaware.
By Omer Aydin ·
To form a C-Corp in Delaware in 2026, you file a Certificate of Incorporation with the Delaware Division of Corporations (filing fees start at $109 and scale with authorized shares), appoint a Delaware registered agent, then complete the corporate setup investors expect: bylaws, board consent, and founder stock issuance. Delaware C-Corps are the standard entity for venture-backed startups — most institutional investors will not invest in anything else.
This guide covers the filing itself, the share structure that avoids a five-figure franchise tax surprise, and the post-formation documents that make the company fundable.
| Item | Detail |
|---|---|
| Filing fee | From $109 (depends on authorized shares / par value) |
| Standard share setup for startups | 10,000,000 authorized shares at $0.00001 par value |
| Annual franchise tax | $175 minimum (small companies) — typically ~$450 for a 10M-share startup using the assumed-par-value method; due March 1 |
| Annual report fee | $50 (filed with the franchise tax) |
| Registered agent | Required — physical Delaware address |
| Directors/officers public? | Directors appear on the annual report, not the formation filing |
The name must include a corporate ending — "Inc.," "Corporation," "Incorporated," "Co.," or similar — and be distinguishable from existing Delaware entities. Check the Division of Corporations name search, and run a trademark search before you print T-shirts.
Same requirement as Delaware LLCs: a physical Delaware street address, continuously maintained. Your agent also receives the annual franchise tax notice — the deadline startups most often discover late. Lovie includes Delaware registered agent service in its plan.
Delaware's minimum filing requires the corporate name, registered agent, authorized shares and par value, and the incorporator's signature. Startups typically file an extended certificate with investor-standard provisions (director liability limitation, indemnification).
Get the share structure right at filing. The startup standard is 10,000,000 authorized shares of common stock at $0.00001 par value. The tiny par value matters: Delaware calculates filing fees and franchise tax from your share structure, and 10M shares at no/high par value can produce an enormous bill, while 10M at $0.00001 par keeps the filing fee near the minimum and the annual franchise tax around $450 under the assumed-par-value method.
File with the Division of Corporations directly or through your registered agent/formation service. Expedited options exist (24-hour, same-day, and faster tiers at escalating fees).
The certificate creates the company; the bylaws govern it — meetings, officers, share transfers, voting. The incorporator signs an initial action appointing the board of directors, and the board then adopts the bylaws and appoints officers (CEO, Secretary, etc.) by written consent. None of this is filed with Delaware, but every investor's diligence checklist starts here.
The board authorizes issuing common stock to the founders — typically via Restricted Stock Purchase Agreements with vesting (4 years, 1-year cliff is the standard). Founders pay the (tiny) par-value purchase price, and each founder should evaluate an 83(b) election within 30 days of purchase — a hard IRS deadline with significant tax consequences if missed. This is the step to get advice on; the deadline is unforgiving.
Also assign pre-formation IP to the company (IP assignment agreements) — investors will check.
Apply for the EIN free from the IRS — online with an SSN, or via Form SS-4 by fax for non-resident founders (full EIN guide). Then open the corporate bank account with the filed certificate, bylaws, board consent, and EIN.
Unlike the flat $300 LLC tax, C-Corp franchise tax is calculated — and the default method can shock you:
The five-figure invoice is not a mistake — it is the default method. You (or your service) recalculate with the assumed-par-value method when filing. Due March 1 each year with the $50 annual report; late payment costs $200 plus 1.5% monthly interest.
A C-Corp adds real overhead: board formalities, double taxation on distributed profits, and the franchise tax calculation above. It pays for itself when you need stock — for investors, option pools, QSBS treatment, or an eventual priced round. If you are building a profitable business without outside investors, an LLC is usually simpler and cheaper. The full breakdown: LLC vs. C-Corp in 2026.
For the most current filing fees and forms, consult the Delaware Division of Corporations official portal. If you're evaluating whether a C-Corp is right for your startup formation journey, consider your fundraising timeline and investor expectations.
Filing fees start at $109 and depend on your authorized shares and par value — the standard 10M-share, $0.00001-par structure stays near the minimum. Add a registered agent (required), optional certified copies (~$50), and expedite fees if needed. Annually, expect about $450 franchise tax plus the $50 report fee for a typical startup.
The startup convention is 10,000,000 shares of common stock at $0.00001 par value. It provides room for founder grants and an option pool, keeps the filing fee low, and produces a reasonable franchise tax under the assumed-par-value method.
Delaware's invoice defaults to the Authorized Shares Method, which punishes high share counts. Recalculate using the Assumed Par Value Capital Method — for a typical pre-revenue startup with 10M authorized shares, the result is around $450. You pay the lower of the two methods.
Yes. There is no citizenship or residency requirement for stockholders, directors, or officers. Non-resident founders get the EIN via Form SS-4 (fax) and can open accounts at fintech-friendly banks remotely.
The filing itself, no. The post-formation stack — stock purchase agreements with vesting, 83(b) elections, IP assignment — is where mistakes get expensive, and where a startup attorney (or a service that provides investor-standard documents) earns the fee. The 83(b) election's 30-day deadline cannot be fixed afterward.
Authorized shares are the maximum the certificate allows the company to issue; issued shares are what stockholders actually hold. Startups authorize 10M but might issue 8M to founders, keeping the rest for the option pool and future hires.
If institutional fundraising is clearly the path, form the C-Corp now — conversions cost money and stall deals mid-raise. If fundraising is hypothetical, an LLC keeps taxes simple and converts to a Delaware C-Corp through a routine statutory process later.
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Form your Delaware C-Corp with Lovie — $29/month including registered agent, EIN application assistance, post-incorporation documents, and franchise tax deadline tracking.
Form your company with Lovie — $29/month, registered agent and ongoing compliance included.