Delaware House Bill 400: New compliance requirements take effect August 1, 2026

Delaware is the preferred home for many corporations, LLCs, partnerships, and other business entities. That status is unlikely to change anytime soon, but the cost of maintaining a Delaware entity is increasing.

Delaware House Bill 400 (HB 400) introduces a broad range of fee and tax changes administered by the Delaware Secretary of State. While some annual tax increases became effective on January 1, 2026, most filing and service fee changes take effect on August 1, 2026.

If your business is incorporated or registered in Delaware, now is the time to understand how these changes could affect compliance budgets, filing strategies, and ongoing entity management.

What is Delaware House Bill 400?

Delaware House Bill 400 is legislation that updates various business-related fees and taxes collected by the Delaware Secretary of State.

The law increases costs associated with:

• Entity formation filings
• Annual taxes for certain business entities
• Certified documents and copies
• Record searches
• Service of process
• Trademark-related filings
• Expedited filing services

The goal of the legislation is to modernize Delaware's fee structure and generate additional revenue from business entities that benefit from the state's corporate legal framework.

When does HB 400 take effect?

Most fee increases: August 1, 2026

The majority of filing, document, and service fee increases under HB 400 become effective on August 1, 2026.

Certain annual tax increases: January 1, 2026

The legislation also includes annual tax increases that took effect on January 1, 2026, for:

• Limited liability companies (LLCs)
• General partnerships (GPs)
• Limited partnerships (LPs)
• Registered series entities
• Certain other alternative entity types

Because these tax changes became effective earlier than the broader fee increases, businesses should already be accounting for higher annual entity-related costs.

Which businesses are affected by DE HB 400?

HB 400 has implications for nearly every organization that relies on Delaware entities.

Businesses most likely to feel the impact include:

• Delaware corporations
• LLCs
• Limited partnerships
• General partnerships
• Businesses managing large entity portfolios
• Organizations that frequently submit state filings
• Companies that regularly use expedited processing services

For organizations with dozens, hundreds, or even thousands of entities, small fee increases can quickly add up across an entire portfolio.

How could HB 400 affect your organization?

Higher ongoing compliance costs

The most immediate impact is financial. Annual taxes and filing costs will increase for many organizations, resulting in higher recurring compliance expenses.

More expensive transactional activity

Activities that are often routine, such as obtaining certified documents, filing amendments, conducting record searches, or requesting state services, may now require larger budgets.

Increased reliance on planning

Organizations that wait until the last minute to submit important filings may face significantly higher costs if expedited services are required. As a result, legal, compliance, and governance teams may want to reassess filing timelines and internal workflows.

Greater scrutiny of entity portfolios

Many organizations periodically review their legal entity structures to ensure they remain aligned with business objectives. Rising maintenance costs may create additional incentives to evaluate inactive, redundant, or underutilized entities.

Should businesses take action before August 1, 2026?

Organizations with Delaware entities should review upcoming filing activity, assess annual compliance budgets, and evaluate how increased fees may affect future transactions and entity maintenance strategies.

How Corporate Creations can help

Legislative changes are easier to manage when you have visibility into your entity portfolio and a trusted partner helping you stay ahead of compliance obligations.

Corporate Creations helps organizations:

• Manage Delaware and multi-jurisdictional entity compliance
• Navigate filing and reporting requirements
• Monitor regulatory changes that affect legal entities
• Coordinate filings efficiently across jurisdictions
• Maintain accurate entity records and governance data

As HB 400 introduces higher costs for many Delaware entities, proactive planning can help reduce administrative burden and avoid unexpected compliance challenges.

Need help understanding how Delaware House Bill 400 may affect your organization? Contact Corporate Creations to discuss your entity portfolio, compliance requirements, and filing strategy before the August 1, 2026, fee changes take effect.

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