Deleware Coprorations -
1. The name/address of directors need not be published.
2. One of the lowest costs to form corporation, and only $50 annual Franchise Tax
3. Deleware has "Court of Chancery" for corporations, with established precedent
4. No need to have bank account in Deleware
5. No state corporate income tax on corporations not operating in Deleware
6. No personal income tax on shares owned by holders outside Deleware
Believe it or not, I think #6 makes a big difference in tax rates for the people who are receiving LARGE stock options. Also, #3 is a very important factor, in case THQI ever were to be sued (by anyone, including the shareholders).
Califiornia has an alternate minimum corporate tax established to ensure corporations formed in Deleware, but doing business in California pay their "fair share". I call it robbery, they call it revenue, others call it the source of their bi-monthly checks. Whatever, the tax advantage of being in incorporated in Deleware is not as large as you might expect, especially for a company doing business in California.
None the less, it was a solid move, and it sure makes the stock options go a lot farther for those collecting shares. I'm happy they moved to Deleware for the "Court of Chancery" factor, it provides clear cut precedent which heavily favors protecting the corporation.
Rugrats, JB |
