Why do so many companies incorporate in Delaware?
This is a good overview.<p>I honestly don&#x27;t understand how these IP transfers are legal and continue to be legal. In the example from this article if the Delaware subsidiary bought the tennis balls from Vietnam for $10m and sold them to the California subsidiary for $80m, this is actually illegal. It&#x27;s called transfer (mis)pricing. The general principle is that such pricing should be at arm&#x27;s length. But for some reason it&#x27;s totally fine for IP.<p>Not only does this avoid state taxes but it is the basis for big tech companies dodging federal taxes by transferring their IP to Irish subsidiaries and then paying &quot;royalties&quot;.<p>So I&#x27;m a big fan of two reforms:<p>1. Profit apportionment. If 20% of your revenue comes from a particular state or country, that jurisdiction gets to tax 20% of your profit. This whole transfer pricing nonsense has to end and it&#x27;s the real cause of the race to the bottom; and<p>2. Much higher property taxes for real estate owned by corporations rather than individuals. Corporate anonymity with real estate is a real scourge and drives speculative bubbles, money laundering and simply parking money in real estate, none of which does anyone any good.