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Wait until you hear about 2711 Centerville Road, Wilmington, Delaware. Such shady entities registered there include "Level 3 Communications", "California Pizza
by zach 15y ago
Wait until you hear about 2711 Centerville Road, Wilmington, Delaware.
Such shady entities registered there include "Level 3 Communications", "California Pizza Kitchen", "The Walt Disney Company", "Dole Food" and "Qualcomm".
Seriously, all those companies are Delaware corporations who maintain their registered office at that address, despite the fact that their CEO has probably never visited that address in their lives.
This is such a common occurrence that it hardly merits notice. Even if you throw in the observation that dubious businesses favor incorporation in Wyoming (which has no corporate income tax, franchise tax or tax on corporate shares), that's still not saying much.
- Joakal 15y agoIf you think that's bad, several major 'USA' companies are lobbying USA congress for a tax break as an incentive to return money back to USA from tax havens [0]. [0] http://www.bloomberg.com/news/2011-06-28/biggest-tax-avoiders-win-most-gaming-1-trillion-u-s-tax-break.html http://www.bloomberg.com/news/2011-06-28/biggest-tax-avoider...
- OstiaAntica 15y agoWhy should the U.S. tax capital, earned outside of the U.S., when it is invested back in America?
- econgeeker 15y agoIn fact, since repatriated capital will be deployed inside the US, likely to produce more profits which can then be taxed... taxing repatriated money is a drag on the economy and reduces future tax income. (I don't know if the effect is large or small, but I think it is large.)
- runako 15y agoThe current proposals don't require the money be invested in America. Most of it will likely be paid out to shareholders as dividends. The article the parent links to provides more discussion.
- ihodes 15y agoI'll be registering my company in Delaware. Why the hell wouldn't I?
- georgieporgie 15y agoBecause if you don't live in DE, it can be a pain if legal action ever comes up. I've read that the "home court advantage" is very real. Also, people often establish companies in tax-free states thinking that they'll avoid taxation. But nexus will bite you. By living in a state, or doing work in a state beyond sales, you establish nexus and are responsible for state income tax.
- tzs 15y agoWhy Delaware over the state you are in? (Assuming you aren't actually in Delaware).
- dunham 15y agoThey have a different legal system (a court of chancery) that businesses prefer when resolving disputes. See "Delaware Court of Chancery" on Wikipedia.
- jacques_chester 15y agoThere's a nice golf course right behind that address. I imagine quite a few CEOs have stopped by.