1) Agreed, in fact I believe YC requires incorporation in Delaware. So it is probably important to distinguish between early-stage&#x2F;growth-stage startups and companies that are profitable or have exited to IPO. Dropbox is a good example... I assume it was a Delaware company, until it became an Irish company. In fact, its probably a similar story with Apple, Microsoft, and many, many more...<p>2) Again, yes, this would apply to companies not making profits which are primarily early stage and growth-stage (although, even massive companies like Amazon can be &quot;growth-stage&quot; as long as they re-invest all their profits). But I think you are missing the purpose of this post, which is not to argue that most startups are avoiding taxes... but which YC ones that shouldn&#x27;t be are? If the eventual life cycle for successful YC&#x2F;VC backed companies IS to dodge taxes, wtf?<p>3) The $800 franchise tax is substantial when multiplied by the 2.2+ million taxable business in California... but not when compared to $59.9 Billion Apple, just Apple is currently estimated to owe in US taxes?  Here&#x27;s a fun little article show the crux of the conflict - <a href="https:&#x2F;&#x2F;www.theguardian.com&#x2F;technology&#x2F;2016&#x2F;may&#x2F;05&#x2F;apple-taxes-cupertino-mayor-infrastructure-plan" rel="nofollow">https:&#x2F;&#x2F;www.theguardian.com&#x2F;technology&#x2F;2016&#x2F;may&#x2F;05&#x2F;apple-tax...</a><p>I don&#x27;t think JUST corporations should take a haircut... investors and capital funds are going to have to as well since it is their demand for returns that pressure companies that want to &quot;do good&quot; into becoming tax dodgers.  It&#x27;s a cultural problem as well as a structural one.  The point, again, is when is YC (and the investors and individuals who make up YC) going to start making a change? I&#x27;m a fan of YC, and the companies they invest in... but in this I see a blindspot, albeit one that is shared by most of the global business community.