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If you have headquarters in California you pay tax here as well as a bit in Delaware The reason to register in Delaware is because of business friendly courts

• dogma1138 9y ago
  The federal corporate tax can be up to 35%, which is the highest in the world outside of some literally banana republics. Delaware has a corporate tax rate of 8.7%, California has 8.84. So yes no one is incorporating in Delaware becuase of taxes, WA, TX, NV and a few others have zero corporate tax.
  • uiri 9y ago
    WA has business & occupation tax which functions like a corporate income tax but it is levied on revenue rather than profit.
    • ericd 9y ago
      Which is frequently much, much worse for companies than a higher tax on profits. Low margin businesses more than high margin businesses like software.
  • rtpg 9y ago
    Isn't this a misrepresentation of the global state? I think the corporate tax rate in France is 33% of profits, which isn't far from 35% Not sure how state tax rates interact with the federal one though
    • zdkl 9y ago
      Keep in mind we're the last effectively communist country in the world, I'm not surprised in the least to see corporate taxes up there with the "banana republics" gp was talking about. "Social" money has to come from somewhere!
      • lovich 9y ago
        I don't believe I've ever heard France described as a communist country before
        • zdkl 9y ago
          We have extremely influential labor unions, the public sector is a leading job provider (even a majority employer in some areas), healthcare and a lot of infrastructure is nationalised, huge welfare programs, free public education for all... But most importantly to the (joke) argument that we're the last communist country there's a massive popular adhesion to the points listed above and for some reason a deep seated mistrust of the wealthy.
          • lovich 9y ago
            I mean, you only have to look at pretty much every wealthy person to see why they would have a mistrust of them. Even guys who are doing good things now, like Bill Gates, didn't get wealthy by acting like nice people. As for the communist thing, ah I didn't realize it was a joke argument, thought it was a serious one
    • dogma1138 9y ago
      Yes but iirc France has a system of tax credits that reduce the liability for large companies especially. You can deduct 7% from those 33% from the payroll tax credit alone as long as you pay your workers more than the minimum wage.
• TimPC 9y ago
  Delaware doesn't have unusually friendly for business courts. It mostly just has a lot of established case law. It's cheaper for businesses when they know where the lines are on most laws because of previous cases and rulings. Ambiguity is more expensive than the level of bias in most legal situations.