Delaware raises the LLC franchise tax from $300 to $400 under HB 400, effective August 1, 2026
Delaware HB 400, signed into law and effective August 1, 2026, raises the annual LLC franchise tax from $300 to $400. The first payment at the new rate is due June 1, 2027.
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Delaware House Bill 400, effective August 1, 2026, raises the annual LLC franchise tax from $300 to $400, a 33% increase that applies to every Delaware LLC regardless of revenue or activity. The first payment at the new rate is due June 1, 2027 for the 2026 tax year. Corporations were not affected. For a GP running ten SPVs and a management company as separate Delaware LLCs, the increase adds $1,200 a year to the fixed cost of keeping the entities in good standing. See today's SPV formation checklist for the full procedure and costs.
Sources
- Delaware HB 400 LLC franchise tax increase (IncNow)www.incnow.com/blog/2026/09/15/delaware-llc-franchise-tax-increase/
- Delaware LLC franchise tax due date (Delaware Inc)www.delawareinc.com/blog/june-1-important-deadline-delaware-llcs/
Terms used in this article
- SPV (special purpose vehicle) An SPV, special purpose vehicle, is a legal entity, usually a limited liability company or limited partnership, formed to make and hold a single investment or a defined group of investments, with its own investors, bank account, documents and economics, separate from any fund the sponsor manages.
- Organisational expenses Organisational expenses are the costs of forming and raising a fund, including legal fees for the LPA and offering documents, regulatory filings and formation of the fund entities, which the fund bears up to a cap set in the limited partnership agreement, with any amount above the cap paid by the general partner.