More than half of the Fortune 500 companies are incorporated in Delaware. The reason? It is cheap and the taxes are low and you don't need to live in Delware.<p>This just doesn't smell right. It is like one of those tax loopholes that major corporations take advantage of.<p>What are your thoughts on Delaware incorporation?
Actually, I don't think those are the primary reasons, as I believe corporations pay taxes where their HQ is and other operations are, not where they incorporated (or they would just incorporate in one of the states with no corporate income tax). I think Delaware is popular because the laws are friendly to corporations and there's a lot of case law for precedent, so it's lower risk for possible litigation in the future.<p><a href="http://en.wikipedia.org/wiki/Delaware_General_Corporation_Law" rel="nofollow">http://en.wikipedia.org/wiki/Delaware_General_Corporation_La...</a>