If your business is incorporated in Delaware, it’s time to update your 2026 compliance budget. On May 21, 2026, Delaware enacted House Bill 400 (HB 400), introducing a comprehensive update to the fee and tax structures administered by the Delaware Division of Corporations.
While Delaware remains the top jurisdiction for global founders due to its robust legal framework, these new legislative changes mean higher operational and maintenance costs for almost every entity type.
Here is everything you need to know about the effective dates, retroactive clauses, and specific fee hikes.
Key Dates: When Do the Changes Take Effect?
The implementation of HB 400 is divided into two main categories:
- January 1, 2026 (Retroactive): Annual franchise taxes for LLCs, LPs, LLPs, and LLLPs apply retroactively to the beginning of this year.
- August 1, 2026: All other administrative, filing, and dissolution fee increases become active.
Crucial Note on Dissolutions: Because the annual tax increase is retroactive to January 1, any entity dissolved on or after August 1, 2026, will be billed at the new, higher annual tax rate, in addition to the updated dissolution filing fees.
The Breakdown: Major Tax and Fee Changes
The most significant shift for e-commerce owners and startup founders is the Delaware LLC franchise tax increasing from $300 to $400.
Here is a side-by-side comparison of the notable changes under HB 400:
| Entity Type / Service | Old Fee / Tax | New Fee / Tax (HB 400) | Effective Date |
| LLCs (Limited Liability Companies) | $300 | $400 | Jan 1, 2026 (Retroactive) |
| Limited Partnerships (LPs) | $300 | $400 | Jan 1, 2026 (Retroactive) |
| Registered Series (LLCs & LPs) | $75 | $100 | Jan 1, 2026 (Retroactive) |
| LLPs & LLLPs | $200 /partner | $300 /partner | Jan 1, 2026 (Retroactive) |
| Foreign Corporations (Annual Report) | $125 | $250 | August 1, 2026 |
| Foreign Corporations (Late Penalty) | $125 | $200 | August 1, 2026 |
Additionally, administrative costs—such as generating certified copies of incorporation certificates, processing amendments, and requesting expedited processing—are seeing sharp increases across the board.
Why Did Delaware Increase Fees?
Delaware houses over 2 million business entities, including 66% of the Fortune 500. Corporate taxes and fees constitute roughly 37% of the state’s total revenue. The state legislature passed HB 400 to modernize its corporate fee registry, adjusting prices to account for current operational inflation and administrative resource costs.
