Why Delaware is a tax haven?

A tax haven is a country or independent area that offers foreign individuals and businesses little or no tax liability.

The list of tax haven countries includes Andorra, the Bahamas, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, the Channel Islands, the Cook Islands, Hong Kong, The Isle of Man, Mauritius, Lichtenstein, Monaco, Panama, and St. Kitts, and Nevis.

Forget about those countries; it's easier to hide your money in the US than almost anywhere. Panama actually ranks as the 13th most attractive spot for hiding assets, while the US lies 3rd; Cayman and Singapore came ahead of it. Creating a shell company in the US is easier than obtaining a library card. It is easy to create a vehicle to hide your money and your identity in the US that there’s no need to go to Panama or elsewhere. Almost no state in the US requires beneficial ownership information. Delaware and Nevada and Wyoming top the list of easier place to open a shell company.

Big corporates like American Airlines, Apple, Bank of America, Berkshire Hathaway, Cargill, Coca-Cola, Ford, General Electric, Google, JPMorgan Chase, and Wal-Mart have registered entities in Delaware. Almost 64% of fortune 500 companies have some form of presence in Delaware. It is not illegal to open a company in Delaware. But business people don't want the public to know everything about them. Delaware fulfills some of their aspirations.

How Delaware Succeeds as a Corporate Tax Haven:

• Less State Taxe - There is little sales tax or state corporate income tax (8.7%) on goods and services provided by Delaware corporations operating outside of Delaware. The state does not have a corporate tax on interest or other investment income that a Delaware holding company earns. Delaware also does not have any personal property tax. Delaware law does not require the payment of a minimum corporate income tax.
• Low Annual Franchise and LLC Tax: Delaware, however, offers a flat-fee franchise tax of $100 and a flat-fee LLC tax of $250.
• Corporate Privacy: Delaware laws allow a single person to be the sole director or shareholder. Delaware doesn't require the names and addresses of LLC members and managers to be made public.
• S-Corporations and LLCs: S-corps have shareholders, but they are not taxed at the federal level.
• Court of Chancery: This court allows the state to adjudicate corporate litigation, and its corporate laws regularly influence Supreme Court decisions.

Here is the exact line stated in the state government corporation website.
"More than one million business entities take advantage of Delaware's complete package of incorporation services, including modern and flexible corporate laws, our highly-respected Judiciary and legal community, a business-friendly government, and the customer-service-oriented staff of the Division of Corporations."

Delaware: Facts and Figures

• State Capital: Dover
• State Abbreviation: DE
• Counties: New Castle, Kent, and Sussex
• Municipalities: 57
• Nicknames: Diamond State; First State; Small Wonder
• Motto: "Liberty and independence"
• Residents: Delawarean
• Resident population: 945,934
• Area: 1,982 square-mile
• GDP: US$74 billion

Delaware is the home of DuPont, the world's largest chemicals manufacturer.
More companies are registered in Delaware than its population.