3 ms·

So what about companies who incorporate in Delaware? Are these companies he doesn't want to invest in?

• ericd 12y ago
  That's to take advantage of Delaware's well fleshed out corporate law, not to avoid paying any taxes. I pay more in taxes to do that, in fact.
  • JonFish85 12y ago
    That may be some, but a good chunk of companies save a lot of tax dollars by doing this (according to http://www.nytimes.com/2012/07/01/business/how-delaware-thrives-as-a-corporate-tax-haven.html?pagewanted=all http://www.nytimes.com/2012/07/01/business/how-delaware-thri... among others).
• trollian 12y ago
  Or companies that aren't repatriating their profits to avoid paying US tax?
• mmcconnell1618 12y ago
  Delaware, Nevada, etc. let you skip STATE tax but your corporation would still be based in the United States and Federal taxes would still be due. If Mark Cuban resides in Texas then the net effect of lower tax revenue in the state of Delaware should be almost zero to him personally.
  • vonmoltke 12y ago
    > Delaware, Nevada, etc. let you skip STATE tax but your corporation would still be based in the United States and Federal taxes would still be due. It's not that simple, and it doesn't allow corporations to skip state taxes. I only know Texas' law in detail, but Texas imposes franchise taxes on all companies "transacting business" within the state. Basically, any company with a physical presence in Texas is considered to be "transacting business" and may be subject to franchise tax. So, if your entire operation is in Texas it doesn't matter if you incorporate in Texas or Delaware, you are going to pay Austin the same.