4 ms·

Delaware is very tax-friendly. A vast number of companies incorporate in Delaware due to this reason. edit: words

• jegutman 11y ago
  It's not really taxes, although the fees for filing corporate documents. The franchise taxes are lower, but the numbers for large companies are so tiny it's inconsequential ($800 in California compared to $150 in Delaware). My understanding is that Delaware has strong corporate law with well defined protections for corporations and lots of case law to back it up from their Chancery Court. The huge history of case law is really what makes the big deal from what I've read because it makes contracts enforced there (which all shareholder contracts would be) much more predictable in terms of what's allowed.
  • omginternets 11y ago
    My startup is based in Delaware: you're spot on. Low taxes, few constraints for internal organization, and clear answers from lawyers stemming from a rich jurisprudential history.
• leroy_masochist 11y ago
  All true, but additionally in this case, the actual physical headquarters of DuPont is in Wilmington, Delaware.