The Myth of the Tax-Exempt Delaware Company |
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One of the persistent myths of the aviation industry is that all you have to do to avoid liability for state tax on your aircraft is to put your aircraft in a Delaware corporation. This is true only if you plan to use the aircraft only in Delaware. Otherwise, you are subject to tax the same as any other aircraft owner. In a recent interview, William M. Remington, director of the Delaware Division of Revenue stated that:
This becomes obvious when you consider that most of the Fortune 500 companies are incorporated in Delaware and they are subject to state taxes the same as any other company. For an example of what happened when a company tried to use the "Delaware defense", see: |