Well, I just work for one, actually.
Apparently it is popular for public companies to be “officially registered” or some such, in the state of delaware. A good percentage of publically traded companies, to the best of my knowledge, are officially, but not really based, in Delaware.
If i recall correctly, this has something to do with Delaware tax laws.
So, can anyone explain what is so special about Delaware?
How can you be a Delaware corporation, without actually doing business there? Someone please explain the arcane, complicated, and nonsensical tax laws which make almost every Sili Valley corporation somehow be based in Delaware?!..~!
Delaware has incorporation laws that favor Corps in several different ways. For one thing, shareholders have fewer rights to sue Corps. For another, taxes are less.
To incorporate in Delaware, you do have to have an office there, but nobody has a real one. Instead, there are companies out there that have an office in Delaware, and you authorise them to be your agent there. They perform no real service for you except to give you a legal presence in Delaware. They have minimal fees, say $25/month.
If you’re really in another state, you have to “qualify” to do business in the non-Delaware state, which means mailing them a copy of your Delaware incorporation papers and a check.
I incorporated my current business about four months ago, and at that time my lawyer told me that 3/4 of the stocks on NYSE and Nasdaq are incorporated in Delaware. I don’t know if that’s true, but I believe it.