Prince Harry and Meghan have set up 11 companies in a tax haven
Lord knows I’m not going to defend those two. But really?
The Duke and Duchess of Sussex have set up a network of 11 companies in the tax haven state of Delaware,
Delaware’s not a tax haven, most certainly not for someone living in the US. It has distinct advantages as a corporate centre, not least is that they’ve paid great attention to having an efficient and sensible (no, not pro-corporate, just one that deals with cases quickly and according to the law) commercial court system.
You don’t get to dodge US Federal taxes by being in Delaware, most certainly not as either a resident or citizen of the US. It’s not a tax haven.
Among the listings are two publishing firms – Peca Publishing LLC and Orinoco Publishing LLC.
And that’s even more stupid. LLC and LLP are pass through entities. Taxes aren’t paid at the level of the company or partnership, they go on to the personal tax bills of the individuals. Being in Delaware in this sense is no different than – except for very minor issues – being in CA or TX or ND.
Experts say there are several benefits in incorporating a company in Delaware, including the state’s flexible business laws and its low personal income tax rates.
What damn bloody experts are these? In the US system you pay personal income taxes according to the rules of the state where you’re resident. Where the LLC is resident doesn’t change that in the slightest. They pay CA income tax rates!
Delaware doesn’t impose income tax on corporations registered in the state which don’t do business in the state. Also, shareholders who don’t reside in Delaware need not pay tax on shares in the state. This is why it has been referred to as a domestic tax haven.
They’re pass through corporations! Meaning that they pay their tax where they reside – California.