It is true in Delaware there aren't any taxes at all??.. 
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Delaware...
- Thread starter kenshiro8
- Start date
Not true. There are fewer business taxes which is why many companies are incorporated in Delaware (Ford for example) but there are personal and business taxes. I think they have a "no sales tax" deal for retail.
There are some states with "no taxes", but only certain taxes; everyone pays tax in some way, shape or form. Oregon has no sales tax and Washington state has no state income tax. Many cities will give large corporations HUGE tax breaks for the sake of having a company that large bring in lots of work. Intel is a great example of that - they have quite a few very large campuses here in Oregon.
They'll always get you in the end...
Texas has no personal income tax. But they get their 0.5kg of flesh through property tax.
Queue response from anguished texans on their property tax bills...
Texas has no personal income tax. But they get their 0.5kg of flesh through property tax.
Queue response from anguished texans on their property tax bills...
Delaware is a popular place to incorporate because the corporate law there follows very closely the Model Business Corporations Act - the MBCA is somewhat more friendly to corporate management than what is reflected in other states corporate law.
I don't know anything about Delaware corp taxes - Rick's comments above may also provide some insight into why many corporations are incorporated in Delaware.
I don't know anything about Delaware corp taxes - Rick's comments above may also provide some insight into why many corporations are incorporated in Delaware.
Paulo,
In Delaware, we have zero sales tax, low income taxes, and low property taxes. This is made possible by the number of corporations registered in Delaware. The tax breaks they receive are considerable, but the overall numbers of "Delaware Corporations" are HUGE, thus we normally have a large surplus in our state budget. However, due to our state government overcooking the golden egg, this goose's eggs have turned to lead. Delaware has been suffering a budget deficit for the first time in many, many decades.
It's not just large corporations like Ford, Pepsi Cola, and the like that are registered in Delaware. Small corporations by the hundreds of thousands are registered here as well. And on an international scale, many large tankers, container ships, etc., sailing worldwide, are registered here. 99.9% of them have never been in Delaware waters, yet they have a Delaware hailing port. As a tax haven, Delaware still ranks right at the top.
BUT, as a result of these wonderful benefits..... corporate tax breaks, no sales tax, and low income/property taxes, Delaware has become the retirement "Mecca" of the mid-Atlantic coast, and THE place for young and middle aged folks to buy a summer home at the beach. Lucky, lucky us!
Now, Delaware has all of the great things everyone else has enjoyed for so many years.....overdevelopment, increased crime, ridiculous traffic gridlock, increased pollution, complete overloading of our infrastructure, economic woes, etc.
Sadly, it's not the Garden of Eden anymore, more like a festering boil, just waiting to burst.
Bill
In Delaware, we have zero sales tax, low income taxes, and low property taxes. This is made possible by the number of corporations registered in Delaware. The tax breaks they receive are considerable, but the overall numbers of "Delaware Corporations" are HUGE, thus we normally have a large surplus in our state budget. However, due to our state government overcooking the golden egg, this goose's eggs have turned to lead. Delaware has been suffering a budget deficit for the first time in many, many decades.
It's not just large corporations like Ford, Pepsi Cola, and the like that are registered in Delaware. Small corporations by the hundreds of thousands are registered here as well. And on an international scale, many large tankers, container ships, etc., sailing worldwide, are registered here. 99.9% of them have never been in Delaware waters, yet they have a Delaware hailing port. As a tax haven, Delaware still ranks right at the top.
BUT, as a result of these wonderful benefits..... corporate tax breaks, no sales tax, and low income/property taxes, Delaware has become the retirement "Mecca" of the mid-Atlantic coast, and THE place for young and middle aged folks to buy a summer home at the beach. Lucky, lucky us!
Now, Delaware has all of the great things everyone else has enjoyed for so many years.....overdevelopment, increased crime, ridiculous traffic gridlock, increased pollution, complete overloading of our infrastructure, economic woes, etc.Sadly, it's not the Garden of Eden anymore, more like a festering boil, just waiting to burst.
Bill
Ian Anderson
Lifetime Supporter
And itis calle the UNITED States of America - Why?
Nothing very united about their systems!
Seems a bit wierd to me as an outsider!
Ian
Nothing very united about their systems!
Seems a bit wierd to me as an outsider!
Ian
Ian,it goes back to a system of what's known as States' Rights whereby the individual state has sovereignty over certain functions and procedures,like tax formats and rates and so on.There is,at times a crossover or duplicity of function with the federal government which occasionally produces a clash of wills but generally the states are left to determine their own way of doing things.It's complicated and fully understood by few but we've continued this far. A.J.
Incidentally, just because a corporation is registered as incorporated in Delaware doesn't mean that it enjoys substantial tax breaks - only the part of the business which is nexus to Delaware may enjoy such breaks, the rest of the business not located in Delaware pays the taxes related to the state in which it has nexus (is doing business). In other words, small and large businesses alike are subject to the tax regimes of any/all states in which they do business (have nexus) regardless of their state of incorporation. For the portion of the business, if any, which does business within the borders of Delaware there may indeed be tax breaks for that piece. Obviously, most large businesses incorporated in Delaware conduct the bulk of their commercial activities outside Delaware and therefore don't derive Delaware tax benefits thereby.
Pete McCluskey.
Lifetime Supporter
Cliff, what is the point of them registering in Delaware then?
Pete, there's two reasons: 1) for any part of the business which is conducted within Delaware then there are tax benefits, and 2) more importantly, Delaware corporations law is more standardized and friendly to corporate management and Boards - example, some states corporations laws have limited the ability of corporations to reimburse Board Directors for personal liability for gross negligence and/or failure to carry out their fiduciary duties (in an attempt to force Directors to improve their conduct and obligations to shareholders). Delaware corporations law doesn't prohibit reimbursement of Directors for gross negligence and breach of fiduciary duty. In my experience it's mostly purely legal reasons that drive Delaware incorporation, but there are undoubtedly tax reasons as well as others have wisely pointed out in this thread.
I ask this cause here they say too many italian company are...closing bases in italy..and opening newer ones ..in Delaware.
I dunno if that is just a fiscal location, and to me seem so hard to think at a place in the US as a fiscal paradise.
Didnt they arrest Al capone even for tax frauds?
I dunno if that is just a fiscal location, and to me seem so hard to think at a place in the US as a fiscal paradise.
Didnt they arrest Al capone even for tax frauds?
Hi Paulo, yes, the unfortunate reality was that tax evasion was one of the few crimes the gov't could conclusively prove against Al Capone! One of the quirks of our tax system here in the US is that criminals owe tax upon illegally gained income!
ahahahahahahahahaha...muahahahahahaha..ahahahahahahahaha
NO..HERE IS SIMPLY IMPOSSIBLE.....u shall arrest nearly 30 milions of people
