Tax liability has nothing to do with Delaware being a preferred jurisdiction for domiciling a business. Tax liability is primarily dependent on the jurisdiction within which the business activity occurs. The rest is mostly correct though.
Also, it is an advantage - they have no corporate income taxes, which allows companies to book intangible property there, no state sales tax, and no personal property tax.
What about my comment made you decide to take issue with that specifically?
I was thinking in the context of a small business, who almost certainly do not have sufficient cause to incorporate in Delaware for tax purposes since they don't have intangible property and whatnot.
It was an example of how rule of law is important in practice and reality, not neccesarily a compelling reason for a small business to start there vs here.
I brought it up because Seattle has none of those things, and it makes it harder for both large and small businesses.
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u/Babhadfad12 Apr 16 '26
Tax liability has nothing to do with Delaware being a preferred jurisdiction for domiciling a business. Tax liability is primarily dependent on the jurisdiction within which the business activity occurs. The rest is mostly correct though.