Second, no state but Delaware uses a system where the annual franchise tax is the lower of two figures: one based on the number of authorized shares and the other on APVC.
Delaware's franchise tax is the lower of two rates, the first derived from the number of authorized shares, and the second from the company's APVC.
Companies with 3000 or fewer authorized shares pay the minimum fee of $30, regardless of their APVC.
Companies with publicly traded shares, by contrast, have a number of authorized shares, and an APVC that yields a substantially higher franchise tax.
Recall that the APVC is generally the product of the company's assets and the ratio of its authorized to issued shares.