 By Evan R. Park If you operate a business in Delaware, two new bills could directly impact your costs, compliance obligations, and day-to-day operations. House Bill 400 and House Bill 380 stand to affect businesses of all sizes, from startups to large multi-entity organizations. The Delaware State Chamber of Commerce is actively monitoring both bills. House Bill 400: Increased Fees for Business Filings and Compliance House Bill 400, introduced by Rep. Kerri Evelyn-Harris, proposes a broad increase in fees collected by the Delaware Secretary of State. These changes affect nearly every type of business entity registered in Delaware, including corporations, LLCs, partnerships, statutory trusts, and trademark holders. What’s Changing 1. Higher Annual Taxes (Effective January 1, 2026)
Routine business filings will become more expensive, including:
Why This Matters Delaware’s reputation as a premier state for business formation is built on efficiency and cost-effectiveness. These increases may shift that value equation for companies that manage multiple entities or series structures, rely heavily on frequent filings, use expedited processing services and/or actively maintain trademarks. Even smaller businesses may feel the impact through higher annual taxes and increased administrative costs. Startups and companies operating on tight margins may need to adjust financial planning sooner than expected. What Businesses Should Do Now With some changes already in effect and others arriving in 2026, businesses should begin preparing by:
House Bill 380: Expanding Delaware’s Data Privacy Requirements House Bill 380 proposes a major expansion of the Delaware Personal Data Privacy Act (DPDPA), significantly broadening which businesses are subject to privacy compliance obligations. While originally aimed at larger organizations, this update would bring many small businesses into scope. Who May Be Covered A business could fall under the law if it:
In practice, this could include companies using email marketing tools, customer databases, e-commerce platforms, or analytics software. Why This Matters 1. Expanded Compliance Requirements
Cost and Operational Considerations While no direct fees are imposed, compliance may require investment in:
For small teams, these responsibilities may require meaningful operational adjustments. If enacted, House Bill 380 is expected to take effect around 2027, giving businesses time to prepare. Early planning may be especially important for companies that rely heavily on customer data, operate in e-commerce or digital marketing, and/or use multiple third-party platforms. Together, these proposals signal a shift in Delaware’s business and regulatory environment. House Bill 400 increases the cost of maintaining and operating business entities, while House Bill 380 expands the responsibilities associated with handling consumer data.
For Delaware businesses, the key theme is clear: compliance expectations are rising, and preparation will be essential. The Delaware State Chamber of Commerce will continue to monitor both bills and advocate for a balanced approach that supports consumer protection while maintaining a competitive and business-friendly environment in the First State. A Note on Legislative Change In related news, State Representative Debra Heffernan has announced she will not seek reelection after 16 years of service representing the 6th District in northern New Castle County. During her tenure, she supported a range of policy initiatives including disability services, reproductive rights, juvenile justice reform, paid parental leave for state employees, marriage equality, and climate legislation. Her departure marks a transition in leadership as Delaware continues to evolve its legislative priorities and business landscape.
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 By Evan R. Park Delaware is at a pivotal moment. Decisions being made in Dover right now will influence the state’s competitiveness, business climate, and economic trajectory for years to come. For the business community, the path forward is clear: support policies that drive innovation and investment and reject those that limit competition and increase costs. That means advancing Senate Bill 16 and Senate Bill 19, while opposing Senate Bill 272. Senate Bill 16 — Delaware Banking Modernization Act Delaware has long been a national leader in banking, corporate law, and financial services. Maintaining that position requires continuous modernization, especially as technology reshapes how financial systems operate. Introduced by Sen. Spiros Mantzavinos, Senate Bill 16 reflects a proactive, strategic approach to that challenge by bringing the state’s legal framework in line with the realities of today’s financial marketplace. What it does:
Why it matters:
State Chamber Position: Support Senate Bill 19 — Payment Stablecoin Act Also introduced by Sen. Spiros Mantzavinos, Senate Bill 19 complements these efforts by establishing a clear regulatory framework for stablecoins and related digital asset services. For businesses operating in or entering this space, clarity is critical. Uncertainty can delay investment, limit growth, and push innovation elsewhere. What it does:
Why it matters:
State Chamber Position: Support Senate Bill 272 — Public School Construction Requirements Introduced by Sen. Walsh, Senate Bill 272 raises serious concerns for Delaware’s business community. The bill would mandate Project Labor Agreements (PLAs) for public school construction projects exceeding $1 million. While supporters argue that PLAs can promote efficiency and labor stability, the practical impact raises questions around competition and cost. What it does:
Why it raises concerns:
There have been discussions about increasing the threshold for PLA requirements from $1 million to $5 million. While that adjustment may limit the scope of the bill, it does not address the underlying concern: a government mandate that interferes with a fair and open marketplace. The issue is not whether PLAs can be used—they already can be, when appropriate. The issue is whether they should be required in a way that limits participation and reduces competition. State Chamber Position: Oppose Taken together, these proposals highlight two very different approaches to economic policy.
Senate Bills 16 and 19 are rooted in growth, innovation, and competitiveness. They recognize where the economy is heading and position Delaware to lead. They provide clarity for businesses, encourage investment, and strengthen key industries that have long been central to the state’s success. Senate Bill 272, by contrast, introduces new constraints at a time when flexibility and competition are more important than ever. It risks increasing costs, limiting opportunities for local businesses, and sending the wrong signal about Delaware’s business climate. For policymakers, the choice should be straightforward. Support legislation that modernizes the economy and attracts investment. Reject proposals that restrict competition and raise costs. Delaware’s business community is engaged and paying attention. The Delaware State Chamber of Commerce will continue to monitor these bills as they move through the legislative process. Please reach out to me at [email protected] if you have any questions. |
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DELAWARE STATE CHAMBER OF COMMERCEThe Delaware State Chamber of Commerce promotes a statewide economic climate that enables businesses of all sizes and types to become more competitive in a constantly changing, increasingly global, and unpredictable environment.
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