Well, it froze over! I agree with a statement attributed to Richard Geisenberger in the News Journal today in an article about Delaware's efforts to continue to lead the way as a Corporate Headquarters location. He reportedly said:
"The stronger your presence in Delaware, the stronger defense you'll have in tax court,"
Delaware created a statutory Headquarters Management Corporation to provide structure and incentive for corporations to house their headquarters functions in Delaware. It is hoped by the State that this will bring new jobs and increased State revenues.
But this new law, and new type of corporation wasn't intended to handle all situations. Analysis will continue to be performed by other States' courts as to whether the protections under Delware Law have been properly implemented. As I have said many times, and as Richard Voll, Esquire (New Jersey) is reported to have said:
"You can't get credit just because you have a piece of paper in a lawyer's desk, you have to earn it."
This means that you should follow the advice of competent counsel as to the setting up and operation of your Delaware corporation, so as to receive the full benefit of this lawful vehicle to efficiency and tax savings.
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