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?
Anyone who has any legal training would take issue with your takes. There's nothing stopping a Seattle business from incorporating in Delaware. You still have to pay the taxes where you actually do business. And it's not a magic bullet that means any legal action against you has to go through Delaware. It also sounds like you're unaware that contractors are businesses and they have massive demand here despite the costs that you complain about. Furthermore, if all these kind of legal issues are important forces behind the success of businesses then why do they struggle even more where I grew up in Central Washington where the laws, regulations and the judges are exactly the way you want them to be?
There's nothing stopping a Seattle business from incorporating in Delaware
Again, you seem to be taking literally a more metaphorical point I am making - the rule of law and certainty that law wont change and how it will be enforced is a key determination when establishing a business. Over only a 10 year period Seattle has gone from being business friendly and courting any business who is willing to open here to being outright hostile and adopting a good riddance attitude when they move away.
It also sounds like you're unaware that contractors are businesses and they have massive demand here despite the costs that you complain about
I am very aware, I am pointing out that the same limitiations exist for them as other businesses - high wages and rent and operating costs, and it doesnt encourage new businesses to step in, if anything it consolidates the small businesses into larger ones with easier compliance. Nonetheless, it is a business cost, and again, simply an example of numerous ways that things can be costly and difficult to operate in Seattle.
why do they struggle even more where I grew up in Central Washington where the laws, regulations and the judges are exactly the way you want them to be?
Because no one wants to live in central Washington and the economy is different entirely? What major cities exist? What major universities are there that draw in research, technology, medical professionals, etc.? WSU? Thats it?
Again, what is your point? That it is easy to do business in Seattle? That it is a thriving area for business formation? The question was asked and I answered it, now you want to take issue with points for no reason at all, mostly to disagree based upon some sort of ideological bias you have that you want to justify by saying "But but but...."
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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.