Elon Musk is not the only one interested in Delaware. At the beginning of the 20th century, New Jersey was the prime state for business registration in America. However, as New Jersey tightened its laws in response to antitrust fervor, businesses began to migrate across the Delaware river to Delaware. This corporate migration has turned Delaware into America’s incorporation capital, with 1.9m firms incorporated in the state in 2022. More than two-thirds of America’s biggest firms by revenue are registered there, generating about $2bn in business taxes and fees for the state in 2022. Now, other states are eager to attract businesses by offering even juicier incentives. Elon Musk and other aggrieved tycoons are helping make the case against Delaware. To assess their chances, a columnist visited Nevada, which has long wanted to make itself as amenable to business registration as it is to nuptials. As Benjamin Edwards, a law professor at the University of Nevada, Las Vegas, puts it: “There is dreary Wilmington and the Texas wastelands. Or there is fabulous Vegas.”
Source: The Economist
Date: 2024-03-14 10:11:46