Hacker News new | ask | show | jobs
by prance 3364 days ago
> That could lead to overcrowding in the federal court in Delaware, he said, given the large numbers of corporations incorporated in the state.

Wouldn't that actually be fair? As it is now, it seems that Delaware can give all those tax breaks, and not bear any consequences.

1 comments

What Delaware tax breaks? To my knowledge incorporating in Delaware doesn't have any tax advantage.

You'll be taxed wherever you operate, not where you incorporate.

> Delaware today regularly tops lists of domestic and foreign tax havens because it allows companies to lower their taxes in another state β€” for instance, the state in which they actually do business or have their headquarters β€” by shifting royalties and similar revenues to holding companies in Delaware, where they are not taxed. In tax circles, the arrangement is known as β€œthe Delaware loophole.” https://mobile.nytimes.com/2012/07/01/business/how-delaware-...