Delaware Incorporation Practices
Discussions center on why companies, including startups and non-US entities, incorporate in Delaware for tax benefits, mature case law, and investor preferences despite operating elsewhere, with debates on enforcement, foreign qualification, and offshore alternatives.
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Aren't most corporations incorporated in Delaware for tax reasons anyway?
He is bs'ing you. Companies don't incorporate in United States they are incorporating tax havens across the world ( everywhere but the United States)
Curious how this can be enforced if business is incorporated in another state like WI/DE ? or offshore like Ireland ??
Even if the company is incorporated in Delaware ?
It’s not about moving your HQ to Delaware or Wyoming. It’s about adopting the corporate law of the state of incorporation. When a company incorporates in a state like Delaware, they usually have minimal physical presence (eg. a PO Box / mail forwarding service, a firm that supplies a minimal skeleton board and does minimal corporate rituals).
Many American companies (including most or all YC startups) do the same, incorporating in the low-tax state of Delaware for favourable tax treatment even though the company's offices and bulk of revenue-generation are elsewhere.
Does that work even if the companies incorporated in Delaware?
I live in Peru but created my corporation in the US in Delaware just to get the gateways and other US services.
You don't have to be a resident to incorporate, although (as always) the laws often are quite arcane. If I remember correctly, taxation differs massively depending on whether your European company owns the US corporation/LLC or whether individual persons do.You have to register with a state, and Delaware seems to be the preferred one, as they're basically a tax haven. The Liechtenstein of the US…
Definitely! You'll have to look into any potential tax consequences and any paperwork you need to do for the country you're in, but there is nothing on the Delaware side that would prohibit you from incorporating. Let us know if you have any questions!