When a fast-growing SaaS company received an unexpected and staggering $200,000 Delaware Franchise Tax bill—with penalties to match—it could have been a financial blow and an operational distraction. Instead, thanks to Chore’s swift intervention and expertise, that bill was reduced to just $9,000 in a matter of days.

Here’s how it happened.

🚨 The Challenge

In early 2025, a Delaware C-Corp in the SaaS space found itself hit with the maximum franchise tax amount of $200,000, plus additional penalties, pushing the total due even higher.

This assessment was triggered by an incorrect gross asset value reported in a filing submitted by a registered agent service. The error flagged the company for the maximum payment tier, despite it being far from accurate based on the company’s true financials.

The client was blindsided—this was far above what they’d paid in prior years. They immediately turned to Chore to step in and make sense of the situation.

🛠️ The Solution

Morganne, a member of Chore’s operations team, took the lead and here's what unfolded next and the steps you can take too if in a similar situation:

Step 1: Rapid Assessment

She reviewed the Delaware notice and quickly identified two issues:

• A $200K maximum tax bill based on inaccurate asset data.
• Penalties related to the overstated filing.

She pulled the saved filing, verified the par value method was incorrectly applied, and confirmed that gross assets were understated instead of overstated (ie, RA services said $0 in assets which flagged Delaware).

Step 2: Filing an Amendment

Unable to reach Delaware by phone, Morganne used the Delaware Franchise Tax chat support to explain the issue and confirm that an amended filing had been submitted.

Delaware responded that they could accept the amendment—but only with official asset verification via a signed Form 1120 or a temporary affidavit.

Step 3: Document Submission & Resolution

Morganne sent in a Form 1120 signed by a company officer, and within 36 hours, Delaware had verified the correct data.

✅ The Results

• Franchise tax reduced from $200,000 to $9,000
• Penalties eliminated
• Issue resolved in under 3 days

What could have been a massive financial and legal burden became just another task handled quickly and professionally.

💡 Why It Worked

Morganne credits the success to:

• Immediate trust and delegation from the client
• Her familiarity with Delaware’s tax system and resolution process
• Chore’s operational infrastructure, which allowed her to act swiftly with the right documentation in hand

🧠 Lessons & Takeaways

“It’s always worth contacting state agencies if there’s any doubt around a notice. And if you’re a Chore client, trust your operations team to take it off your plate.” — Morganne

This case is a prime example of Chore’s value in action. Beyond just administrative support, Chore brings deep operational expertise, proactive problem-solving, and real financial impact to its clients.

Have a confusing tax notice, unexpected penalty, or operational headache? Let Chore handle it—so you can stay focused on building your business.