Delaware Biden “New Sweden” has beaches not as hot as Florida in the summer plus good access to New York City Washington DC Philadelphia Baltimore. Close enough but not too close.
Very popular corporate home. Good for retirees too. No sales tax! No tax on retirement income! If SHTF sail your old wood boat to Israel or Iceland
Delaware has been called a corporate tax haven in the pages of the New York Times,
topped a list of tax havens published by National Geographic, and been
a target of Brazilian legislation targeting tax havens. Even The Economist has some choice words for Delaware.
Delaware does not tax “intangible assets” such as royalty payments.
A New York Times article estimated that corporations saved $9.5 billion in taxes over the last decade – a loss felt by other state budgets.
Delaware does not require corporations to be linked to a real name or identity.
In Delaware, the number of corporations that tops the population – Delaware has over 1 million business entities but only 917,002 inhabitants.
Some 60% of American businesses are incorporated in Delaware – including Silicon Valley companies like Google, JP Morgan, Visa, and Bank of America, and 64% of Fortune 500 companies.
Most of these companies have no physical presence in Delaware. Several middlemen maintain their tenuous link to their home state by providing a mailing address and passing on legal notices.
incorporation of subsidiaries (rather than parent companies) since they can be used to set up a shell company to avoid taxes on assets like royalties.
Delaware has absurdly more subsidiaries than other states (58% of all subsidiaries in their sample) and
far more patents relative to its GDP than any other state – four times what you would expect and double the next closest state. Since the Delaware loophole works by transferring patents to Delaware to avoid royalties
“are consistent with Delaware serving as a domestic haven against state corporate taxation.”
Delaware and countries like Britain and America are tax havens just as much as the usual suspects. Delaware is merely singled out as an example of the practices that cause America to be ranked near last for compliance with international anti-laundering standards and other transparency practices.
Delaware is popular among credit card companies because it does not limit the amount of interest they can charge.
Delaware maintains a unique court called the Court of Chancery to rule on legal issues for corporations. The average American civil trial takes around 3 years to resolve. But in Delaware If you need an answer in 4 days, you’ll get an answer in 4 days!