Why Big Corporations Love Delaware
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- čas přidán 22. 05. 2024
- Delaware is home to fewer than 1 million people, but more than 60% of Fortune 500 companies are incorporated in the state, including Google parent company Alphabet, Amazon, CVS, and CNBC’s parent company Comcast. Delaware is seen as friendly to corporations due to its unique court system and laws. But there may be some complications for small businesses hoping to call Delaware their legal home. Watch the video above to learn more about how Delaware has cultivated its business-friendly reputation.
Chapters:
0:00 Intro
1:40 Why Delaware?
4:42 Unique court system
8:19 Drawbacks for small businesses
Produced by: Charlotte Morabito
Additional Camera by: Nathaniel Lee
Edited by: Nora Rappaport
Graphics by: Jason Reginato
Supervising Producer: Lindsey Jacobson
Additional Footage: Gloria Oppong
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Why Big Corporations Love Delaware
Currently sitting on lunch break at a big company in Delaware. Interesting to learn more about its laws!
Lies again? Serie A Leader Soft Spoken
what did you have for lunch Tom?
thanks for sharing Tom, very cool
Yes! As a former Delaware resident, explaining that the courts are the draw and not the taxes is so hard for people to get.
Delaware DOES have a state income tax. They don't have any SALES tax. Get it straight CNBC.
This channel is not normal, everything i read about literally a video is made about it straight away 😂. Keep it up.
Almost like CNBC is in with the folks that displayed you the article wherever you read it first
Bro I was talking about corporate landlords one day and then credit cards a few days ago and came to find CNBC uploads the same days lol. It’s insane.
All these corporations I grew in Wilmington, DE it was a very dangerous city high poverty. The regular people never sees the benefits.
One of my companies does a lot of shipping with other companies and is registered in Delaware. This means that when I ship to/from another company the shipping laws (see FOB, etc.) are the same for both of us; we both know what to expect without having to investigate case law etc. Having common law is gold sometimes. However, all my taxes are paid in Missouri because we operate in Missouri.
(assuming the other company is registered in DE also. Many are.)
👍🏻
You drive for prime inc?
I know that many people incorporate in Nevada for the anonymity. Many wealthy people with expensive exotic cars put their cars title in a Montana company with a Montana license plate. Most people starting small companies don't know that they can incorporate out of state. Or even out of the country. Thanks.
Can you help me incorporate in delaware
Plus Delaware politicians follow corporations orders without questions.
Have any of you been to the TOTAL WINE store (a HUGE liquor store which includes a wonderful cigar selection!) in Claymont, DE right by the border with Pennsylvania? Shopping there is even more fun because of the lack of sales tax! There also is a Home Depot next door, which is a nice bonus!
Delaware resident here.
very cool!
Awesome!
Dover?
Wilmington, Delaware….a ton of corporate buildings here in the city.
Delaware also is where foreign businesses incorporate.
Such as the Dutch Shult Rector otherwise known as the German Legal Aid Society a/k/a The Legal Aid Society.
I always wondered this. Half the mail I get is usually from Delaware lol. Its a nice state I went there summer 2021, drove around stayed in Dover for a few days, went to a couple beaches. Had a nice burger from this chain restaurant (forgot the name), went to a popular casino near the nascar raceway. Calm state but wouldn’t want to live there longterm.
Why
Middletown is blowing up due to all these workers from NJ, NY, CA and Philadelphia. ❤ (302)
provide good service, and people, and companies are willing to pay the tax. funny how that works.
Y’all should check out why Wyoming and South Dakota are bringing in a lot of business too
Spreading Delawareness
It’s only 10% for the big guy, that’s pretty attractive for any bank.
Bullshyte
@@jdm1039 You refer to them as a “lobbyist”
some fortune 500 companies here in MN :)
Hey Delaware, focus on getting rid of the freaking NO FAULT DIVORCE LAW. It's ridiculous to award unfaithful, loser spouses monetarily. In Delaware you can get well paid for adultery if you are the financially under performing spouse. Disgraceful.
Popular state to avoid paying taxes
Sounds to me like this is a nice way of saying that they have laws that screw thr average American if they have a dispute with a big company.
Finally Delaware gets some love !
Love? It's a tax haven
Canadian businesses incorporating in Delaware, thats some cheese 🫡
Alot of them lol. Famous example is Lululemon.
I like how they squeezed shell corporations in as a subtext. They're great for business legal or not. If the incorporated businesses decided to leave, almost a third of tax revenue is gone. Makes sense to legalize sports gambling and marijuana to hedge those bets they will stay. Just in case.
They don't call Joe Biden "Credit Card Joe" for nothing 🤣
The next video should be about the silicon valley bank
The moving and shifting of US multionationals is a redicilous cost for the average US taxpayer in that specific state. I don't even understand why the US would allow these practices.
@@thisguyhere1 Because HQ of major corporations require substansial infrastructural investments, which are being payed by the taxpayer to build and maintain them. US internationals barely pay any tax.
So.. let me get straight.. you can change your house and neighborhood if you want/need to, without think how that may effect you neighbors, but company’s cannot change they HQ?
@@thisguyhere1 remember the 2 billion tax credit Amazon asked NY to build their second headquarters there? Georgia gave it to them, now they suspended the construction.
@@thisguyhere1 many sports team threaten to leave the city if the city/state does not help pay for their new stadiums
@@mvaraman building a headquarter has nothing to do with incorporating. u can register your business in any state, and build your headquarter or business in any state you want.
Sioux Falls SD was before Delaware
Next time I travel to the USA, I'll visit Delaware, just for kicks.
Isn’t CVS Headquartered in RI? 2:20
Yes but it’s legally incorporated in Delaware so they can access their unique court system and protection of their more favorable business laws. A lot of companies do that
Let’s say you make money in PA do you pay pa tax or DE if u have a llc in DE
It depends, but probably Pa for that Pa-sourced income
put the LLC that profits in the state you want to pay tax in.
I will say 99% of business are "incorporated" in a building at W 12th St & Orange Sts the building isn't that big either
I live in London, England and my company is registered here. It is a global business would it benefit me to incorporate in Delaware? Primarily I need to secure funding.
Incorporate in Delaware then
@@Rust_Rust_Rust This is what I am thinking- the traction and appetite for investment is a lot stronger in the US.
After the Tesla court case you can say goodbye to so many companies!
And 'brotherly love' is just up the creek for the founding Daddy.
💎
It may be good for businesses, but it sure ain’t good for job growth. I’m a Delaware resident here with a Bachelor’s in media design and I haven’t had an inch of luck in finding a decent position that benefits from the degree.
Also bad for employees. Delaware has the worst employee protection laws in the country.
Also no availability of jobs due to lack of companies in DE...hell even in the main cities like Wilmington and Dover...too much competition...😞
Because you got a goofy ah degree
@@adamt1905😂
um, yeah a small state that specializes in corporate regulation lacks job diversity, that's how the world works. i would think you would need to go to a place with a major media industry to get a decent job in media design. people gotta move for jobs, all those DE-residing corporate lawyers were not born there.
Nice
It should be illegal for every state to conceal who their shareholders are!
The Delaware legal industry and the corporate lobbyists will fight this tooth and nail, but we have to do this for the sake of income inequality and the people.
Only when we are able to find the assets of the rich, are we able to properly tax the rich pay their fair share!
A rather "on the surface" report on Delaware. It's like saying people choose swiss banks because the swiss alps are nice and the government is stable, laws are predictable and the swiss franc is a security deposit. No you go to swiss banks because there are bank secrecy laws. And the same applies to Delaware. The State doesn't even know who is in charge of companies. There are more companies registred in Delaware than people. And this means it's a very nice place to incorporate your Cartell in some shell companies and launder your money. On top of that some favorable tax schemes which can be easely exploit so that you do not even pay taxes.
Updating laws based on new experiences and new findings. Smart people. Our founding fathers were not necessarily smarter than us, they didn’t have a lot of information. Let’s be honest and stop with the nostalgia
so Delaware in the 1970s GAMED THE SYSTEM and Still Today do this in 2023.
I love Dela 🎉
and it's easier and faster to reach europe from delaware than from washington state
Dark Biden approved
No nexus required?
It seems strange for me that other states and the federal government are okay with one small state attracting so many companies by undercutting the standards that are in place in other states. That reminds me of places like Monaco or Dubai which attract rich people by not having an income tax. We can't to anything against Monaco, but why would you tolerate such an unfair rival in your own country? Are states free to set their own rules? Consumer protection should always be prioritized. It should not be possible to create a company without legally liable people behind it. Otherwise you could just create ten companies and if one is sued for millions, you just let that one get bankrupt and still have the other nine.
states rights
Which one is better delaware or wyoming LLC?
❤
Anonymous shareholding is the biggiest advantage of Delaware.
What’s that?
Wyoming has a chancery court
But you don’t pay Delaware franchise fee unless you do business in Delaware…..
10 percent for the big guy!
@T B the 10% is from you ........fail harder sheep ....pay more have less wokie
Beau Biden - 2 month old baby troll account
Wait. That's a state? I thought that was a town in Maine or was it a Stephen King book I read the word from?
JAK
i watched the video and didnt understand why delaware....
1) Delaware has relatively lax laws about corporate management, giving the board a ton of power and autonomy. This may come as at the expense of employees, investors, and other stakeholders in the company.
2) People are familiar with Delaware law, and it takes effort to learn about the laws in other states.
3) Unique court system specifically for corporations allow legal disputes to be resolved more rapidly and possibly more favorably for the companies.
4) History and precedent, as well as a reputation for being business friendly
One of the reason the taxs are low low and the gays are there they own a lot of shops
Good video but you really framed limited liability in a negative context. Address both sides of it next time.
I tried looking up the positives. I couldn't find anything that would be beneficial for the average taxpayer. Can you elaborate on what exactly are the positives that come with limited liability?
Delaware does have income tax we don’t have sales tax
Evasion and LOOPHOLE
This is what i suspect from a misinformed corporate Loving network.
What,?????
not anymore
Sooooooo shell company money laundering farm.
😮
Deleware is a step away from being the Cayman Islands!
Texas is the place to be for tax breaks
Unfortunately too many people from California are moving here
The banks won’t fail- the federal reserve
Delaware will let credit card companies stay there with unscrupulous practices, a labor pool made servants to high cost of living, corporations love when you have to be employed and cannot afford to be in between jobs to find a better job
yes and...the court of chancery forced Elon to buy twitter when he tried to weasel out of it
Unless you're a huge corporation it is a really gross place
Taxes.
I feel like this video didn't explain anything.
Hunter Biden's laptop loves Las Vegas
no they don’t
Damn, Joe Biden really does live rent-free in people’s minds 😂
because he suks
FJB
Evasion tax and fraud
It’s not fraud. Totally legal.
@@Viviko yes, but it is evading and defrauding the state where you REALLY operate. Like incorporating in the Bahamas, legal, but you're not paying taxes in your country of operation.
All legal.
@@Domspun You actually have to get a foreign certificate of registration in your state regardless of where you incorporated if you incorporated out of state. It doesn't help you avoid that.
@@4.0gpa44 My point is while it is legal, it may be immoral or we can also question if it is being a good corporate citizen.
All this sounds like a way for fat cats to stack the deck against their customers. Delware should be protecting the average joe not the average CEO
Delaware is not what it used to be, look at the Tesla legal issues which would never have been overturned on Texas. Expect some large companies to start to move away from Delaware!
This hasn't aged well >.>
Chrony state with pro crony residents and Pro crony rules, no thanks
A crooked enterprise.
Wow imagine that. A video praising Joe Bidens home state
You not Canadian
Made in congo
Joe Biden
Didn't age well.
#Delawarecourt81 don’t do business in Delaware.
If that's so attractive then why Elon Musk haven't moved there Headquartered of Tesla instead of moving to Texas?
Ask him.
where an llc is incorporated and where its headquartered are two completely separate things…
Both Tesla and Twitter are incorporated in Delaware
@@thiagolucas893 Burn!
@@thiagolucas893 😉
I wouldn't put my business in a blue state even if they paid me. Especially after the mess happening with SVB in California..
cringe
Black woman with a Caribbean accent: i'M cAnAdIaN 🤡🤡🤡
More like congo
Hey CNBC I think of getting afford better-looking reporters! Not the dump truck to used for this one
There's an upcoming recession, maybe they are keeping an eye on costs. Haha.
Bl@ck ceo ewww 🙄😒🙄🙄
TAX ADVANTAGES. There I just saved you 12 min of your life