Theyve always been in Texas. They were only incorporated in Delaware.
The reason companies incorporate in Delaware is because it has all kinds of business protections that keep companies from getting sued when they basically rob people.
This story is that Texas has decided to also make it so customers can't sue companies for ripping them off so Dell doesn't have a reason to incorporate in Delaware anymore.
The blue states are just like the Democrats stupid and greedy with the highest taxes in the country. I really think that the Democrats are going to have a meltdown after the midterm numbers come out. We The People want our President to continue Making America Great Again!!!
True, but in the long run I'm more curios about why the Dem puppets are trying to destroy states and drive businesses away? What is their end game? There is always an end game for the Socialists and Marxists. The money people pushing the Marxist style of Government and agitating chaos and division, Global Group think, they always have an end that they use to justify their mean.
Remember the Black Lives Matter riots being touted as "Mostly Peaceful" and "Global Warming" being re-branded as "Climate Change", They always have a plan to rebrand or do an about face (Elon is the greatest/ Elon is a Nasi) whenever their slip is showing. So what is their end goal and can they reach it without open border style mass invasions?
Maybe their goal is to drive out of all the intelligent, independent, questioning people with money and expertise. Maybe their default, now that the grift has been exposed is just to continue to destroy major cities and balkanize the USA. So far they are doing a good job. George Soros and his son must be beaming! The Zombies on the streets of LA are very telling of what the Democrats want for the rest of us!
I honestly don’t think they have enough brain power for a long game. Billionaires are getting out of blue states because they are being taxed so much and I can’t blame them at all. But my question is who will they support them now that they have run off the billionaires? I really don’t think they are very smart at all. I hope the guy in LA wins so the people of California will see the difference in Democratic Party and the Republican Party. If the people will vote a Republican in for Governor the people will be a lot happier.
Delaware did deleterious damage to its reputation as the best state for incorporating a business when they allowed a shareholder vote on an executive pay package for Elon Musk from Tesla, when Elon Musk was the largest stockholder. The net result of the pay package is that he would simply have been transferring money from a company he was the largest owner of, into his own pocket. The terms of the pay package were set very high, with a high likelihood that the requirements would not have been met. Why the Delaware Court decided that they should interfere was bizarre. And their interference may haunt them forever.
Delaware’s sin was not income tax, but twice voiding a shareholder approved compensation package for Tesla CEO Elon Musk, based solely on a Chancery judge’s personal sensibilities, and the Delaware Supreme Court’s fecklessness in not reversing the lower court’s abuse.
While I totally support the dumping on Delaware and Blue States.
Those companies were never "headquartered" in Delaware, in the sense of employing lots of people. It was, as you said, for the Chancery Court. They weren't paying a lot of state taxes.
It's still a blow to Delaware, no question. They had a whole industry built around those incorporations.
But they WERE paying a ton in franchise taxes based on the number of authorized shares. And that’s in addition to court costs when they availed themselves of the Chancery court.
The cap on the franchise tax for a large company is $250K/yr. Doesn’t sound like a lot, but it finances ≈40% of Delaware’s state budget.
BTW, the location of the “real HQ” is not critical to the state income tax burden. Almost all states apportion U.S. sourced corporate taxable income based on each state’s proportion of sales, payroll, and property. The HQ function is not “awarded” any special emphasis outside of its inclusion in these 3 factors. (I’m a CPA with 45 yrs experience in corporate income tax.)
Reality is incomprehensible to the weirdo leftist progressives.
If they ever wake up it will be way too late.
Bernie, Kathy, and Mamdani are destroying everything they touch and those who follow them will be living in failed, bankrupt, and crime ridden communities sooner than later.
Massachusetts is ripe for the picking. The leftist governor and Boston’s leftist mayor are both tax and spend types. The only thing keeping most companies there is the university industrial complex. The state is in an economic spiral, ready for red state rescue.
No Business can survive in the Blood Sucking Commie Blue States!
Theyve always been in Texas. They were only incorporated in Delaware.
The reason companies incorporate in Delaware is because it has all kinds of business protections that keep companies from getting sued when they basically rob people.
This story is that Texas has decided to also make it so customers can't sue companies for ripping them off so Dell doesn't have a reason to incorporate in Delaware anymore.
Most accurate post on this subject.
Delaware was the place to incorporate back in the 80’s. States change. Smart move on his part.
The reason was because they allowed you to say on your purpose for the business in the articles of incorporation was “to do business”.
It’s been the legal home of corporations for well more than 125 years.
The blue states are just like the Democrats stupid and greedy with the highest taxes in the country. I really think that the Democrats are going to have a meltdown after the midterm numbers come out. We The People want our President to continue Making America Great Again!!!
True, but in the long run I'm more curios about why the Dem puppets are trying to destroy states and drive businesses away? What is their end game? There is always an end game for the Socialists and Marxists. The money people pushing the Marxist style of Government and agitating chaos and division, Global Group think, they always have an end that they use to justify their mean.
Remember the Black Lives Matter riots being touted as "Mostly Peaceful" and "Global Warming" being re-branded as "Climate Change", They always have a plan to rebrand or do an about face (Elon is the greatest/ Elon is a Nasi) whenever their slip is showing. So what is their end goal and can they reach it without open border style mass invasions?
Maybe their goal is to drive out of all the intelligent, independent, questioning people with money and expertise. Maybe their default, now that the grift has been exposed is just to continue to destroy major cities and balkanize the USA. So far they are doing a good job. George Soros and his son must be beaming! The Zombies on the streets of LA are very telling of what the Democrats want for the rest of us!
I honestly don’t think they have enough brain power for a long game. Billionaires are getting out of blue states because they are being taxed so much and I can’t blame them at all. But my question is who will they support them now that they have run off the billionaires? I really don’t think they are very smart at all. I hope the guy in LA wins so the people of California will see the difference in Democratic Party and the Republican Party. If the people will vote a Republican in for Governor the people will be a lot happier.
Bravo, move to the free states where the constitution is obeyed
Does anyone find any of this surprising?
Not me
Delaware did deleterious damage to its reputation as the best state for incorporating a business when they allowed a shareholder vote on an executive pay package for Elon Musk from Tesla, when Elon Musk was the largest stockholder. The net result of the pay package is that he would simply have been transferring money from a company he was the largest owner of, into his own pocket. The terms of the pay package were set very high, with a high likelihood that the requirements would not have been met. Why the Delaware Court decided that they should interfere was bizarre. And their interference may haunt them forever.
It's being called DExit.
Economic FAFO.
Delaware’s sin was not income tax, but twice voiding a shareholder approved compensation package for Tesla CEO Elon Musk, based solely on a Chancery judge’s personal sensibilities, and the Delaware Supreme Court’s fecklessness in not reversing the lower court’s abuse.
United Healthcare left Minnesota for Nashville & Dallas.
HA‼️🙀🤷 demonrats greedy and corrupt and evil, Oh My‼️😻
While I totally support the dumping on Delaware and Blue States.
Those companies were never "headquartered" in Delaware, in the sense of employing lots of people. It was, as you said, for the Chancery Court. They weren't paying a lot of state taxes.
It's still a blow to Delaware, no question. They had a whole industry built around those incorporations.
“They weren't paying a lot of state taxes.”
But they WERE paying a ton in franchise taxes based on the number of authorized shares. And that’s in addition to court costs when they availed themselves of the Chancery court.
True. I was thinking of corporate income taxes, which a company with its real HQ in a blue state would be paying to that state.
Do you have any numbers on the franchise taxes paid to Delaware by any large companies like Tesla, for example?
The cap on the franchise tax for a large company is $250K/yr. Doesn’t sound like a lot, but it finances ≈40% of Delaware’s state budget.
BTW, the location of the “real HQ” is not critical to the state income tax burden. Almost all states apportion U.S. sourced corporate taxable income based on each state’s proportion of sales, payroll, and property. The HQ function is not “awarded” any special emphasis outside of its inclusion in these 3 factors. (I’m a CPA with 45 yrs experience in corporate income tax.)
Please see my augmented comment below.
I stand corrected. Anyhow, Delaware was not accounting for most of Tesla's tax bills, or any nationwide company's.
However, you're right that it was significant FOR THEM, and I'm overjoyed to see them suffer now.
The Shoot Yourself in the Foot Club manages to produce another train wreck.
Just so they don't try to turn it into a blue state with their voting!!!
Reality is incomprehensible to the weirdo leftist progressives.
If they ever wake up it will be way too late.
Bernie, Kathy, and Mamdani are destroying everything they touch and those who follow them will be living in failed, bankrupt, and crime ridden communities sooner than later.
For tax reasons, not politics!
Massachusetts is ripe for the picking. The leftist governor and Boston’s leftist mayor are both tax and spend types. The only thing keeping most companies there is the university industrial complex. The state is in an economic spiral, ready for red state rescue.