Legal News

Delaware is Home to More Companies Than Residents
Download PDF

Google, Apple, Bank of America and JPMorgan Chase have one thing in common; the same legal address. Their address is not found in Silicon Valley or on Wall Street either. They are all technically based in a building in Wilmington, Delaware along with some 285,000 other businesses. The companies only have a dropbox at their Delaware address in order to use it as a method to reduce their tax bills each year. A little more than half of the public companies in the United States are incorporated in the state of Delaware because of its friendly corporate tax laws. In fact, the state boasts more companies than residents. As of the last count, there are over 945,000 companies that have an address in the state and only some 897,000 residents in the state.

Delaware is not the only place in the United States where companies can have an address in order to lower their tax bills. Another common spot is that of Cheyenne, Wyoming, where some 2,000 companies are registered at a single address. Shell companies are legal in the United States but can be a front for illegal business in a corporate-friendly environment. Shell companies are companies that do not exist but do not have assets or significant business activity. Shell companies are used by major corporations in an effort to reduce their tax bills.


Over the past three years, 30 of the most profitable companies in America did not pay income tax, according to a report from Citizens for Tax Justice. From 2008 to 2010, 300 companies paid an average tax rate of 18.5 percent, which is less than the official corporate tax rate of 35 percent. One of the most common methods companies use to reduce paying taxes on profit is by depositing their profit in overseas bank accounts.

Peter Oppenheimer, the CFO for Apple, said in March that the company was not planning to repatriate its overseas earnings because the company would be hit with ‘significant tax consequences.’ Apple was paying an international tax rate of three percent at the time for its overseas money. Apple’s overseas money accounts for roughly two-thirds of its earnings. Apple, Google and other companies asked Congress for a tax holiday on repatriated overseas profits. This would have created a $1 trillion boon for those companies. Facebook was able to structure its initial public offering so that it did not have to pay federal and state income tax on any earnings from 2011 in another example of how companies are finding ways around paying income taxes in the United States.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!





Search Now

Defense Attorney with 3-4 years of litigation experience

USA-CA-San Francisco

San Francisco office of our client seeks defense attorney with 3-4 years of solid litigation experie...

Apply Now

Attorney with 3-7 years of litigation experience


Chicago office of our client seeks attorney with 3-7 years of litigation experience. The candidate s...

Apply Now

Mid-level IP Litigation Attorney with electrical engineering experience

USA-CA-San Francisco

San Francisco office of our client seeks mid-level intellectual property attorney with 3-5 years of ...

Apply Now

Labor and Employment Attorney with 3-4 years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks labor and employment attorney with 3-4 years of litigation ex...

Apply Now


Trust Administrative Associate / Office Manager


FIRM OVERVIEW: Laurel Trust Company (LTC) a retail trust company under organization in Reno, Nev...

Apply now

Associate Attorney


Over my objection, and after nineteen years together, my 69 year old partner is retiring.  I ne...

Apply now

Part-time Paralegal / Legal Assistant


Family Law and Criminal Defense law firm is seeking part-time (20-30 hours per week w/ Flexible sche...

Apply now

Legal Assistant (Dallas)


We are a growing firm in need of an experienced, reliable, flexible, and proactive litigation Legal ...

Apply now

Most Popular


To Top