3 ms·
>"Oh wow, a "My tax dollars!" complaint in the middle of a "My tax dodge is inconvenient!" complaint with a little "Thanks, Obama!" thrown in for good measure."
by batoure 13y ago
>"Oh wow, a "My tax dollars!" complaint in the middle of a "My tax dodge is inconvenient!" complaint with a little "Thanks, Obama!" thrown in for good measure."
Delawares taxes are competitive but not actually the lowest. The following is a succinct explanation from a 3 second Google search on the issue.
"There are two major reasons for Delaware's dominance of the corporate incorporation business. One reason is the bi-partisan political consensus in Delaware to keep the Delaware corporation statute modern and up-to-date, and to rely on Delaware's corporate law specialists for advice in how to do this. As a result, law students at every law school in the United States study the Delaware corporation statute and the decisions of Delaware courts interpreting that law."
"The other major reason corporations choose to incorporate in Delaware is the quality of Delaware courts and judges. Delaware has a special court, the Court of Chancery, to rule on corporate law disputes without juries. Corporate cases do not get stuck on dockets behind the multitude of non-corporate cases. Instead, Delaware corporations can expect their legal disputes to be addressed promptly and expertly by judges who specialize in corporate law."
http://www.newsworks.org/index.php/local/brandywine-to-broad/18206-why-do-so-many-corporations-choose-to-incorporate-in-delaware http://www.newsworks.org/index.php/local/brandywine-to-broad...
- batoure 13y agoWhat is interesting is though the state has an incredibly fast evolving legal ecosystem, it has obviously not maintained the same technological policies.
- rayiner 13y agoTo add to that, the law favors corporations, officers, and directors over shareholders.
- tzs 13y agoA third major reason is fashion. People want to incorporate, and they look and see a bunch of major corporations are incorporated in Delaware even though they don't have any serious business connection with Delaware other than being incorporated there, and so they think it is a good idea for them to incorporate their small local business in far off Delaware just like the giant public companies do. (Or rather, usually do...Microsoft reincorporated back to Washington after a few years in Delaware).
- tptacek 13y agoA fourth reason is that incorporation in your home state can be complicated; for instance, in NY, it (IIRC) involves running newspaper ads. If you're not going to incorporate in your home state, Delaware is a sane default choice. A fifth reason is that it's extremely easy to incorporate in Delaware; it's the Internet's default choice, too.