285,000 Businesses Are Based in This Tiny Building Thanks to the Delaware Loophole
Half as Interesting explains the Delaware tax laws that have made the state a tax haven and home to 65% of Fortune 500 companies.
It's no surprise that corporations don't like taxes. That is why tax havens are so popular.
One such tax haven is right in the United States. It's the Delaware state.
Only home to 0.3% percent of the U.S. population, Delaware is surprisingly home to 65% of Fortune 500 companies and 80% of publicly traded U.S. companies.
Why? Might you ask. Well, it is all because of something called the Delaware loophole that states that Delaware doesn't tax intangible assets.
This tax law is so effective that it is estimated that every year the government loses $9.5 billion due to the Delaware loophole.
Because of this loophole, 285,000 businesses have chosen to be legally based in a tiny building located at 1209 Orange St, Wilmington, Delaware. The CT corporation runs this building and takes care of the mail received by the companies.
Clients of the building include Apple, Google, Walmart, and Coca-Cola. Half as Interesting explains all this in great detail and with their usual sense of humor.
Want to know more about the Delaware loophole? Watch the video.