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Grossmont College Federal Tax Bill of the Apple Inc Discussion


I’m studying and need help with a Business question to help me learn.

Businesses that are corporations (including C-corps, S-corps, LLCs, and LLPs) must register in the state or states where they conduct business. Many states have punitive or punishing incorporation rules like California, charging businesses of any size $800 annually just to exist. Other states like Nevada and Delaware will incorporate any business anywhere in the US and charge little to no fees. The laws of Nevada and Delaware regarding businesses have long been recognized by other state entities. The incentive to do business with these states is strong because the regulatory and fiscal environment is much friendlier than states like California, which is one of the worst states to do business in.

What about multinational corporations, like Apple, who offshore their entire legal structure to countries with little to no tax liabilities?

Check out this article about Apple (Links to an external site.) and their move from Ireland to the island of Jersey- not New Jersey the state, Jersey is a tiny island in the English Channel with incredibly favorable tax laws.

Do you think that Apple, Inc. should be incorporated in California where they are “headquartered?” If so, justify why you think so considering California is not a business friendly state. If not, explain why states should allow companies like Apple to conduct business in their state without being legally registered. Whichever position you take, please provide your rationale.

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