Why Big Corporations Love Delaware

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

[TomMcMorrow]

Currently sitting on lunch break at a big company in Delaware. Interesting to learn more about its laws!

[Fabdanc]

Yes! As a former Delaware resident, explaining that the courts are the draw and not the taxes is so hard for people to get.

[SmashProStudio]

Delaware DOES have a state income tax. They don't have any SALES tax. Get it straight CNBC.

[H]

This channel is not normal, everything i read about literally a video is made about it straight away 😂. Keep it up.

[lamarputney]

All these corporations I grew in Wilmington, DE it was a very dangerous city high poverty. The regular people never sees the benefits.

[JohnDupuyCOMO]

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.

[bicyclist]

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.

[silver]

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.

[trentpettit]

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!

[mistervo]

Plus Delaware politicians follow corporations orders without questions.

[jcheat]

Middletown is blowing up due to all these workers from NJ, NY, CA and Philadelphia. ❤ (302)

[jarretheller]

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.

[ABCDEFGHIJK]

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.

[traveltwo]

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.

[Mr--_--M]

Y’all should check out why Wyoming and South Dakota are bringing in a lot of business too

[dexterdextrow]

provide good service, and people, and companies are willing to pay the tax. funny how that works.

[GillGuidesU]

Canadian businesses incorporating in Delaware, thats some cheese 🫡

[SuburbanDMV]

It’s only 10% for the big guy, that’s pretty attractive for any bank.

[StvNWL]

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.

[iinmyheart]

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.