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It's more about the business environment. California has, sadly, gotten increasingly punitive on business activity beyond the remit of what one would consider
by GoatInGrey 2y ago
It's more about the business environment.
California has, sadly, gotten increasingly punitive on business activity beyond the remit of what one would consider "standard". Such as legally mandating the sexual, ethnic, and gender composition of boards (e.g. SB 826 and AB 979), conditioning permits on companies committing to community benefit agreements that go beyond the direct impacts of the business (e.g. funding art non-profits), increased regulatory scrutiny on companies following activities outside of California that the government disagrees with, and other such things.
Individually, they're manageable burdens, but cumulatively it can get to a point where a business struggles to effectively operate as a market entity nationwide. Particularly for companies that are controversial.
- suzakus 2y agoBut this is about where the company is incorporated (Delaware), not about where it's headquartered. The article mentions that Meta headquarters is staying in California (at least, for now).
- darth_avocado 2y agoStep 1 in get incorporated elsewhere. Step 2 is find political support to build an HQ (read financial incentives). Step 3 is move the HQ.
- int_19h 2y agoYou don't need to be incorporated in Texas to move the actual facilities there, so why is that step 1?
- darth_avocado 2y agoI didn’t say you need to follow the steps. But this is the standard playbook for Billionaires seeking political favors and tax incentives. Incorporating somewhere can get you political favor, which in turn can get you tax incentives. If you’re planning to move your Hq (which is a multi year long effort), it definitely helps if you have the first two steps lined up.
- tensor 2y agoThey could move the HQ without changing where they are incorporated. They also don’t need political support. It’s not a democracy. There are no steps.
- gamblor956 2y agoExcept for the Board thing you've just described Texas... And in Texas if you disagree with the governor he'll send police to your business and threaten to imprison you. I'd rather have burdensome regulation than a gun in my face.