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It's entirely about tax avoidance, thats the whole point of using a Delaware Corp and why they're so popular. The fact they're standard is irrelevant to the pa
by jeffwass 11y ago
It's entirely about tax avoidance, thats the whole point of using a Delaware Corp and why they're so popular.
The fact they're standard is irrelevant to the parent's claim. They're only standard because nobody wants to voluntarily pay extra state taxes. And for some reason it's both legal and generally socially acceptable to have a corporation that has its office and effectively does its business in another state be legally based in Delaware to avoid state tax.
Edit - adding link to 2012 NYT article :
http://mobile.nytimes.com/2012/07/01/business/how-delaware-thrives-as-a-corporate-tax-haven.html?referer= http://mobile.nytimes.com/2012/07/01/business/how-delaware-t...