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Delaware Increases Business Filing Fees and Annual Taxes: What Companies Should Know in 2026

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Many businesses choose to form entities in Delaware because of the state's established corporate laws, business-friendly legal system, and predictable framework for companies of all sizes. However, businesses formed or registered in Delaware should be aware of upcoming increases in annual taxes, filing fees, and expedited processing costs.

Delaware House Bill 400 introduces changes to fees and taxes administered by the Delaware Secretary of State (DE SOS) and the Division of Corporations. These updates will impact a wide range of businesses, including corporations, limited liability companies (LLCs), partnerships, financial institutions, and trademark holders that maintain Delaware registrations.

Most filing and service fee increases take effect on August 1, 2026, while certain annual tax increases are retroactive to January 1, 2026.

At Strategy Law, we help businesses navigate corporate and legal compliance matters, including understanding how regulatory changes may impact companies operating across state lines.

Delaware Annual Entity Tax Increases

Delaware will increase annual taxes for several entity types, creating higher ongoing compliance costs for businesses registered in the state.

Updated Annual Taxes

  • Limited Liability Companies (LLCs): $400
  • Limited Partnerships (LPs): $400
  • General Partnerships (GPs): $400
  • Registered Series LLCs or LPs: $100
  • Limited Liability Partnerships (LLPs): $300 per partner
  • Limited Liability Limited Partnerships (LLLPs): $300 per partner

The annual tax cap for LLPs and LLLPs will also increase to $210,000.

Although these annual tax increases became effective on January 1, 2026, they apply to the 2026 tax year and generally will first be reflected in payments due in 2027. For example, the annual tax due from an LLC, LP, or GP by June 1, 2026, related to the prior tax year remained $300.

Delaware Filing Fee Increases Begin August 1, 2026

House Bill 400 does not increase the standard annual franchise tax rates applicable to Delaware domestic corporations. However, corporations may still be affected by increases to filing fees, annual report fees, service fees, and expedited processing charges.

Beginning August 1, 2026, updated fees will apply to services including:

  • Banking filings: $350
  • Delaware Cooperative Workers Act filings: $200
  • Service of Process (SOP): $100
  • Preclearance requests: $350
  • Preclearance validations: $1,500
  • Trademark filings: $100
  • Short Form Certificate of Dissolution (Corporations): $50
  • Foreign Corporation Annual Reports: $250

The late filing penalty for a Foreign Corporation Annual Report will also increase to $200 if the report is not submitted by the June 30 deadline.

Businesses that regularly maintain Delaware registrations should consider these higher costs when planning annual budgets. Companies anticipating formations, mergers, conversions, financings, dissolutions, or other time-sensitive transactions after August 1, 2026, should also account for increased filing and expedited processing fees.

UCC Filing Fees and Expedited Processing Changes

Delaware is also updating Uniform Commercial Code (UCC) filing fees beginning August 1, 2026. These changes are particularly relevant for businesses, lenders, and financial institutions that rely on UCC filings as part of secured transactions.

Updated UCC Filing Fees

  • Paper UCC filings: Increase from $100 to $125
  • Electronic UCC filings: Increase from $50 to $75

Delaware will also introduce a new 30-minute expedited UCC filing service for an additional fee of $1,500. This expedited fee is in addition to the standard UCC filing fee.

What These Delaware Changes Mean for Businesses

Although these updates are being implemented in Delaware, they may affect businesses throughout the country that have chosen Delaware as their state of formation or registration.

Companies should consider reviewing:

  • Their current Delaware entity structure.
  • Upcoming annual tax and filing obligations.
  • Compliance budgets for maintaining Delaware registrations.
  • Whether their current entity structure continues to support their business goals.
  • Whether inactive, duplicative, or unnecessary entities should be formally dissolved, canceled, or withdrawn.

For LLCs, LPs, and GPs, annual taxes are not prorated. The full annual tax generally applies if the entity is active on the records of the Division of Corporations at any time during the applicable calendar year. As a result, canceling or withdrawing an entity after January 1 may not eliminate that year's annual tax obligation.

Failing to properly maintain a Delaware entity can result in penalties, unnecessary costs, or administrative issues that may impact a company's operations.

How Strategy Law Can Help

Staying current with corporate compliance requirements is essential for businesses that operate across multiple states. Whether your company was formed in Delaware, registered to do business there, or relies on Delaware corporate services, understanding these changes can help you plan ahead and avoid compliance issues.

At Strategy Law, we assist businesses with corporate matters, entity formation, governance, business transactions, and ongoing legal needs. If your company may be impacted by Delaware's upcoming 2026 fee and tax changes, contact Strategy Law to discuss your options and ensure your business remains compliant.

This blog is written as of July, 2026. Recommendations and legal requirements are changing rapidly, so please continue to review our legal updates or review postings on relevant government websites.

All blogs on this site are for educational purposes only, do not constitute legal advice or opinion, and should not be applied to your situation, or any specific situation, without consultation with counsel. Strategy Law, LLP does not provide any legal advice concerning any matter discussed in a blog except upon formal engagement including, without limitation, execution of Strategy Law, LLP’s formal legal services agreement, and with respect to specific factual situations. No blog constitutes a guaranty, warranty, or prediction regarding the result of any legal matter discussed in the blog or any representation.