Delaware House Bill 400 Impact on LLC Founders Clarified in New Guidance
Sep 3, 2026
An acclaimed business formation expert has issued new guidance for founders concerned about the flat annual tax levied against LLCs in Delaware, making a case for why the state’s business benefits outweigh the adjusted costs.
Wilmington, United States, September 3, 2026 /PressCable/ -- VALIS International has released new guidance for foreign founders, non-US residents, and international entrepreneurs explaining Delaware’s House Bill 400 and why the state can remain an attractive jurisdiction despite the higher annual LLC tax.
More information is available at https://valisinternational.com/
House Bill 400 increased Delaware’s annual LLC tax from $300 to $400. The increase applies to the 2026 tax year and took effect January 1, 2026, with the first $400 payment due June 1, 2027.
A spokesperson for VALIS International said the additional $100 changes the cost of maintaining a Delaware LLC, but not the broader factors behind the state’s appeal to international founders. “Delaware still offers an established body of business law, a specialized Court of Chancery, and flexible entity structures,” the spokesperson said. “Its legal framework is also familiar to investors, banks, advisers, and international business partners, which can be valuable when establishing a US business.”
Delaware’s Court of Chancery specializes in corporate and commercial matters, giving the state a substantial body of business-law precedent. Delaware law also provides LLC owners significant flexibility in structuring management and ownership arrangements.
For international founders, Delaware’s accessibility is another consideration, as Delaware law does not require LLC owners or managers to be US citizens, and LLCs can be maintained without filing an annual report, provided the required annual tax is paid.
The higher LLC tax also gives founders a reason to take a fresh look at Delaware’s entity options, according to VALIS International. Because HB 400 left corporate franchise-tax rates unchanged, certain simple corporations may now compare favorably with an LLC on annual state costs. A corporation with 5,000 authorized shares or fewer can qualify for the $175 minimum franchise tax, plus a $50 annual report fee, bringing the potential combined cost to $225.
“Founders do not necessarily have to leave Delaware just because the LLC tax increased,” a VALIS International spokesperson said. “For some straightforward businesses, a corporation may offer a lower annual Delaware state cost, while an LLC may still make more sense for founders who need its flexibility.”
Founders who want to understand how the HB 400 changes could affect their Delaware LLC costs can turn to VALIS International for advice. The company has specialized in helping non-residents form Delaware companies since 1997 and provides LLC and corporation formation, registered agent, EIN retrieval, and other US business services.
Those who want to know more may visit https://valisinternational.com/
Contact Info:
Name: David Gendron
Email: Send Email
Organization: VALIS International
Address: 501 Silverside Rd #105, Wilmington, Delaware 19809, United States
Website: https://valisinternational.com/
Source: PressCable
Release ID: 89202392
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