Delaware House Bill 400 raises corporate fees, LLC fees jump to $400, heads to governor

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• 🔥 Quick Facts
• Delaware Wants More Money from Business Filings
• Other Fee Jumps Hit Incorporation and Document Processing
• How Delaware’s Fees Now Stack Against Texas and Nevada
• Why Democrats and Republicans Clash Over These Increases
• What Happens Next for Delaware Entrepreneurs and Existing Businesses?
  • Sources

Delaware just made it more expensive to form a business. House Bill 400 raises LLC annual fees to $400, up from $300. The bill cleared the legislature and heads to Governor Matt Meyer for final approval.

Delaware Wants More Money from Business Filings

House Bill 400 overhauls Delaware’s corporate fee structure in a major push for state revenue. The bill passed the Senate on May 8 along party lines, with Democrats pushing the measure and Republicans opposing it across the board. According to the legislation, fees align with the true cost of service provided by Delaware’s Division of Corporations. The increase affects limited liability companies, general partnerships, and limited partnerships equally. All three entity types jump from $300 to $400 in annual taxes.

Sponsors Rep. Kerri Evelyn Harris and Sen. Bryan Townsend introduced the bill on April 9, saying modernizing fee schedules reflects actual operating costs. The House approved HB 400 on April 25 with similar party-line voting. Now the ball sits in Governor Meyer’s court.

Other Fee Jumps Hit Incorporation and Document Processing

The LLC annual tax hike is just the beginning. Certificate of incorporation fees spike dramatically, rising from $11.50 to $200. That represents a massive increase for companies filing new paperwork. Service of Process fees double from $50 to $100. Amendments and certified copies also face increases across the board. For businesses handling multiple filings or amendments, costs accumulate quickly.

Expedited services face new caps at $10,000, allowing the state to charge premium rates for rush processing. These incremental hikes add friction to Delaware’s traditionally business-friendly reputation, especially compared to competing states.

How Delaware’s Fees Now Stack Against Texas and Nevada

Entity Type	Current Fee	New Fee
LLC Annual Tax	$300	$400
Service of Process	$50	$100
Certificate of Incorporation	$11.50	$200
General Partnership Annual Tax	$300	$400

“This Act alters various fees assessed by the Delaware Secretary of State to align Division of Corporations fees with true cost of service provided.”

— Delaware General Assembly Bill Text, House Bill 400

Why Democrats and Republicans Clash Over These Increases

Support and opposition split entirely along party lines in both chambers. Democrats highlighted state revenue needs, arguing higher fees modernize Delaware’s system and fund critical services. Republicans warned about competitive threats, pointing out that higher costs could push businesses to form in Texas, Nevada, or other low-fee jurisdictions instead. GOP members noted that HB 400 didn’t receive a single Republican vote, underscoring the stark divide.

Concerns center on long-term economic impacts. Businesses forming outside Delaware reduce the state’s corporate tax base and filing fee revenue. The worry is that short-term fee gains could trigger longer-term losses if corporate transfers accelerate.

What Happens Next for Delaware Entrepreneurs and Existing Businesses?

All eyes turn to Governor Matt Meyer for the final decision. If signed, most changes take effect August 1, 2026, giving businesses two and a half months to adjust. Existing LLCs will face higher annual taxes starting next year. New formations will pay elevated fees immediately. Any company amending documents, obtaining certificates, or using expedited services faces steeper bills.

Entrepreneurs weighing Delaware incorporation should act before August 1 if they want to lock in current rates. For established Delaware entities, budgeting adjustments become necessary. The question remains whether Delaware’s strong legal system and Court of Chancery reputation justify these higher costs compared to competing jurisdictions.

Sources

• Delaware Business Times – Coverage of bill passage and fee comparison analysis
• WHYY – Reporting on bill status heading to Governor Meyer
• House Democrats of Delaware – Official bill text and fee schedule details