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Facilitator Guide

Franchise Taxes

What’s covered

  • Authorized Shares Method 
  • Assumed Par Value Capital Method
  • Penalties

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/discussions/franchise-taxes/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

  • still frame from Franchise Taxes

    Course

    Franchise Taxes

    A review of the two methods of calculating franchise tax, and why there’s no need to panic when a corporation receives its first bill.

  • Icon of a document

    Exercise

    PDF

During the session

Part 1: Knowledge Check
 
Ask attendees these questions to ensure they understand the topic:
 
  • What is franchise tax?
  • What are some of the differences between the two methods of calculating franchise tax in Delaware?
  • What penalties might a company face if it doesn’t pay its franchise tax?
 
Part 2: Group Exercise
 
Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.
 
Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.
 
Part 3: War Stories and Firm Specifics
 
Share your own experiences and guidance, including:
 
  • Anecdotes and war stories 
  • General practice tips (dos and don’ts)
  • Firm-specific guidance and practices

After the session

To continue their learning, attendees can check out related courses in Hotshot’s Corporate Governance topic.