3 ms·
Companies don't incorporate in Delaware for tax benefits, they do it for the well-understood legal system around business law and predictable courts.
by saryant 11y ago
Companies don't incorporate in Delaware for tax benefits, they do it for the well-understood legal system around business law and predictable courts.
- Scoundreller 11y ago>well-understood legal system around business law and predictable courts. I think Ireland has these as well. Laws and rulings will be in English, so American execs can easily grok what's going on without having to get pesky translations.
- dankohn1 11y agoActually, there's a decent argument that Delaware (and Ireland) act as parasites toward their neighbors. http://www.newrepublic.com/article/politics/rogue-state http://www.newrepublic.com/article/politics/rogue-state
- anigbrowl 11y agoI was thinking of how credit card companies incorporate in Delaware because there are no restrictions on interest rates, and how other firms set up shop there because Delaware business law allows for ownership to be quite opaque, in a way that's not tolerated when other countries offer it, eg http://www.economist.com/news/leaders/21571873-how-stop-companies-and-people-dodging-tax-delaware-well-grand-cayman-missing-20 http://www.economist.com/news/leaders/21571873-how-stop-comp... So I do think it's about 50% what you say and 50% policy.