Why 295,000 businesses are in this little building

Рет қаралды 93,256

25 күн бұрын

Use code PHILEDWARDS at the link below to get an exclusive 60% off an annual Incogni plan: incogni.com/philedwards
More info and sources at bottom.
Find me elsewhere:
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Where I get my music (Free trial affiliate link):
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Sources:
My inspo for the story! Tooling around on here: www.atlasobscura.com/places/c...
What's the Matter With Delaware (affiliate link: amzn.to/4aq3D9Q):
The definite 101 book here! I will be real with you - normally when I rely on a book I like to put it on screen, praise it, etc. Ultimately, this one just ended up being more anti-Delaware in weird ways and also a little dated in light of the past couple years. I also just didn't gibe with the premise: I don't think there's anything wrong with a state that's following incentives in a big system. That said, check it out if this video left you hating DE.
The Freakonomics version: freakonomics.com/podcast/why-...
Chancellors Roundtable: • The Chancellors: Past ...
Interesting watch! I actually found this surprisingly accessible for a newb. The thing I mention at the end of this video (and didn't get into in Patreon) is about the Trulia case - basically lawyers were spamming the court to get legal fees on case settlements, and the DE bosses said, "Cut that out!" I was gonna use it as an example of how the court routinely pruned itself to stay fit and lean.
A classic combined reporting lawsuit in the genre (that I ended up not mentioning because it's a bit dated). www.mtc.gov/wp-content/upload...
The boss herself on a panel: • The “State” of Delawar...
Most of this was a bit narrow for this video, but it was good to get a vibe and a couple quotes.
Hang with the court!: courts.delaware.gov/chancery/...
Strine on a panel:
www.law.virginia.edu/news/vid...
Strine's article: www.wlrk.com/webdocs/wlrknew/...
This article is a bit old, but I thought it was a great gut check and fun to read.
I found a few random journal articles but didn't rely on them much for this.

Пікірлер: 320

@PhilEdwardsInc 25 күн бұрын

Use code PHILEDWARDS at the link below to get an exclusive 60% off an annual Incogni plan: incogni.com/philedwards

@JoelMatton 24 күн бұрын

IKEA uses the loophole mentioned in this video. They "don't make a profit" because the IKEA name and logo is owned by a separate corporation, who by sheer coincidence, charges a yearly licensing fee that just so happens to be equal to the amount of profit that IKEA made that year. So Ikea "doesn't make a profit", and thus doesn't have to pay taxes on their profits.

@Gkkiux 24 күн бұрын

ok, but then doesn't the owner of name/logo make a profit from the licensing fee?

@gibberish5388 24 күн бұрын

Doesnt the separate company just pay the tax for them then?

@EricDMMiller 24 күн бұрын

@@gibberish5388it's in a different jurisdiction that pays no corporate tax.

@gibberish5388 24 күн бұрын

Ikea should just start in that area then

@JoelMatton 24 күн бұрын

@@gibberish5388 The company that owns the trademark registers itself in a tax haven country that either doesn't have corporate income taxes or has lower taxes than the country where the real headquarters are. IKEA has somehow figured out a way to register the corporation that owns their trademarks as a charity, so it won't have to pay taxes at all. No idea how they get away with it. A charity with 40 billion dollars in annual revenue.

@TimCheese 24 күн бұрын

Now we know why Phil left Vox - they probably shot down his suggestion for Batman cutaways :D

@PhilEdwardsInc 24 күн бұрын

all my scripts were just me as batman over and over again.

@PlasticSquare 23 күн бұрын

Phil left because Vox didn't allow him to do Batman cut scenes without pants 🩳

@cyrilio 23 күн бұрын

In Amsterdam we have a similar building. Crazy how this is legal and not considered tax evasion. In the business they call it: minimizing tax 'leakage'.

@0o0ification 23 күн бұрын

I believe that the payroll taxes on salaries tide over most states, at least enough so that they don't rock the boat or bite the hand that feeds them. Accordingly, next innovation is for all Netflix employees to live in the same Delaware basement and work from home :p

@LMB222 23 күн бұрын

Wasn't that loophole in NL closed two years ago?

@NotIT 24 күн бұрын

lol This is hilarious that you did a Commissioner Boredom gag. I've long felt that you have a passing resemblance to Gary Oldman when he played Commissioner Gordon.

@PhilEdwardsInc 24 күн бұрын

you are not alone haha

@ROLtheWolf 24 күн бұрын

@@PhilEdwardsInc erm, I had you more as a Tinker, Tailer, Soldier, Spy Oldman

@Shri-Samson 24 күн бұрын

@@PhilEdwardsInc I look forward to the Gary Oldman Gag Cinematic Universe

@PeterBridger 24 күн бұрын

Yes - this made my day 😄 thank you

@misterscottintheway 23 күн бұрын

@@PhilEdwardsInc I look forward to Fifth Element Gary Oldman personally

@Verbosal 24 күн бұрын

Imagine a business meeting between all of them

@imacg5 23 күн бұрын

Companies are persons. And they don't take up spaces. Are they actually faeries/genies/trolls?

@0o0ification 23 күн бұрын

It's all cake in the break room, until somebody replies to all

@Zuranthus 23 күн бұрын

why would they meet? i think you're confused, it's basically just a postal operation for businesses, thus why over 200k businesses can "operate" in that small building, anything that actually needs to be done is forwarded to corporate HQ which are located across pretty much every state in the US. they are not incorporated, that building only handles the business structure side of things for all these different companies around the nation

@Verbosal 23 күн бұрын

I said imagine, mr. businessman

@LordWaterBottle 23 күн бұрын

As long as corporations pay taxes to the states that they operate in, I don't care how they are organized. The problem comes when they find a way to stop paying taxes, and then we can't maintain our infrastructure or schools.

@UXtatic 21 күн бұрын

This.

@brucesterz 21 күн бұрын

The issue with the way you think is that corporations will bounce around state to state until they have the optimal tax situation for themselves. Thus you need to implement a federal tax for these individuals that they can't avoid so their part is actually paid. If Delaware changes its tax laws they will only move, not pay Delaware.

@charlespike8574 24 күн бұрын

There's an address in Dallas that's a base for a couple of hundred Texas businesses too.

@UXtatic 21 күн бұрын

Which is?

@kearfy 24 күн бұрын

I feel like you could make an entire video on Wolters Kluwer itself. Just looked it up, they started out as a bookshop and now they essentially cover Silicon Valley. Fascinating!

@PhilEdwardsInc 24 күн бұрын

it's pretty crazy.

@ktbbb5 23 күн бұрын

I knew I recognized the logo and the name Wolters from somewhere. They are one of the largest publishers of school books in The Netherlands, at least back when I went to high school. Never knew publishing was only a fraction of their business!

@robspiess 22 күн бұрын

Sounds like Amazon

@heindijs 24 күн бұрын

You fit right in the part of commissioner Gordon now that I think of it lol

@mohd8218 24 күн бұрын

Some countries have regulation that each commercial address can only be used for one corporation

@anushagr14 24 күн бұрын

Thanks philtoss for updating the photo and congratulations on your first edit.

@REal1377 24 күн бұрын

As a Georgetown, Delaware native, I can attest to the lack of quaintness. Great video!

@Mlac93 24 күн бұрын

Yay - the wikipedia page is updated !!!!

@Zurich_for_Beginners 23 күн бұрын

Switzerland we have whole town for this. It is called Zug. That makes Switzerland a big player in the trade of natural resources even Switzerland has non of them.

@vsznry 24 күн бұрын

People form LLCs around aircraft & base them in Delaware too.

@PhilEdwardsInc 24 күн бұрын

i actually ran into a lot of these in my sec edgar search

@developingtank 23 күн бұрын

As always, I'm here for the dad jokes. Commissioner Boredom? Grade-A stuff. You definitely have a Commissioner Gordon/Gary Oldman thing going on. Fingers crossed that a Sirius Black cosplay comes in at some point.

@SamTheMan666 24 күн бұрын

Just for those who might not know Lord of War (2005) was based on Victor Bout.

@mikemurphy80 24 күн бұрын

I hadn’t noticed the Gary Oldman resemblance until now

@teamcoltra 24 күн бұрын

I have a business registered at 30 North Gould St in Cheyanne WY. I was just using some online service but i later realized when i was looking up my corporation that thousands of businesses operate out of this tiny building. The whole city has only 64k people in it and the state doesn't break a million

@PhilEdwardsInc 24 күн бұрын

Wyoming is the next frontier (or hopes to be)!

@triphora 23 күн бұрын

I appreciate the dedication of going to the Christiana Mall for the Cheesecake Factory shot. I'm a Wilmington native, nice to see our small but powerful place be covered.

@hermeticbear 23 күн бұрын

You left out the fun part how legal agreements between states allowed all the corporations based in Delaware to force plaintiffs to file lawsuits against corporations in Delaware, where their suit would then be heard by the Chancery court, which would always rule in favor of the defendant aka the corporation? Until some states started passing corporate laws that require corporations who do business in their state to have to face lawsuits in the state as well and not pass it off to Delaware or somewhere else.

@The_Sofa_King 23 күн бұрын

The Batman skit was hilarious. Also gees Delaware is such a tax free state

@deanfarrimond7543 23 күн бұрын

I can’t believe after I said to you that you looked like him with the tash you did a skit! That’s amazing Phil. Never change 😂

@yondie491 23 күн бұрын

I figured it was either something in Delaware or good old "Department 1, Richmond, Virginia"

@RjWolf3000 24 күн бұрын

This feels like a tale of corruption where corporations bought the smallest state they could find and turned it into a low accountability haven…. And then you frame it as an innovation story where one ingenious little state made the better corporate law machine/mousetrap? Strange choice.

@PhilEdwardsInc 24 күн бұрын

totally fair to disagree!

@yuotueb 23 күн бұрын

I really love the style of this video - but I gotta say I share your suspicions about the storytelling as a quaint americana story.

@PhilEdwardsInc 23 күн бұрын

@@yuotueb totally get it! you'd probably like what's the matter with delaware, which is way more negative on delaware law than i am

@yuotueb 23 күн бұрын

@@PhilEdwardsInc thanks for the pointer, and hats off for engaging with critical comments like that!

@ryanortega1511 23 күн бұрын

I think it’s simply a matter of agency: as a smaller state with a similarly small population, they have a smaller tax base to begin with, and with not much room for stuff like industry, they have to find ways to make money. Combine that with its strategic location, and it makes sense they’d choose to attract corporations.

@joseybryant7577 24 күн бұрын

This title made me think of these huge mega buildings, featured in the game Cyberpunk 2077. These block length apartment complexes, where businesses and apartments co-exist.

@safetinspector2 23 күн бұрын

Sounds like the “mixed use” buildings popping up all over the place here these days

@joseybryant7577 22 күн бұрын

Probably similar, just on a massive scale@@safetinspector2

@SimonSozzi7258 23 күн бұрын

Publicly traded companies aren't LLCs. They're just incorporated in Delaware.

@christophermanley3602 24 күн бұрын

Went to High School down the street from here.

@peter_ripka 24 күн бұрын

Finally, Phil shows off his impressions of Gary Oldman! 🦇

@Kctian 23 күн бұрын

Great video. Had to go check and there it was, thanks for upholding your civil duty and fixing the grievous transgression of the miscolored Wikipedia image.

@tylerdecker5099 24 күн бұрын

I assume this ties in to Delaware giving corporations voting rights in some elections. Anything to unpack there?

@PhilEdwardsInc 24 күн бұрын

Yeah, I think What's The Matter with Delaware would hammer on that a bit more than I would. I think they're largely local, city-council style elections that are often low stakes.

@anushagr14 24 күн бұрын

Like london

@monad_tcp 24 күн бұрын

Corporations are people, where's your inclusivity and diversity. You're being a bigot and probably a racist. (this is sarcasm)

@FavioWinehouse 22 күн бұрын

Stunning as usual (Very illustrative). "Corporate law superstar", nice closure. As non english native (excuse grammar), i really appreciate the use of an extense vocabulary. BTW, my favourite tape to rip, is the blue masking tape 🤣 Regards mate...

@drnorrisphd 22 күн бұрын

you were in wilmington??? man i would’ve loved to meet u you’re a real inspiration! maybe you’ll be back again

@mikemurphy80 24 күн бұрын

Fun day Monday! I thought we were going to have to wait till Sunday, thanks Phil!

@shramo 24 күн бұрын

When the rules only help a small portion of people and the rest don't even know theres a game on. I don't like that.

@zacsubach 22 күн бұрын

If only we can be employed as a shell company in a tax haven so that all our salaries go to that company. We won't have to pay income tax as we take no salary and everything we buy is paid for by the company.

@teubks 24 күн бұрын

Great videos as always mate!

@orterves 23 күн бұрын

One errant lit cigarette and someone could crash the entire economy

@ThePlayerOfGames 23 күн бұрын

Glad to see more people talking about this, we have a few of these in my country too

@KristenRowenPliske 24 күн бұрын

I heard about this from a Legal Eagle video. Not that I remember all the details. I’m just impressed that I remembered it.

@Rudster14 22 күн бұрын

I have no problem with each state being unique, but I do have a problem with one state letting the rich and powerful cheat on their taxes

@sharppython 23 күн бұрын

The part where you are talking about stupidity and the people hand Mr. Pennybags the bored apes was hilarious

@JSRMedia 24 күн бұрын

THE GREAT STATE OF DELAWARE!

@alli_mode 23 күн бұрын

When are we getting a "Serious Grey" perody? *Play on Sirius Black

@LMB222 23 күн бұрын

It's a tax heaven, people, not a "business oriented state".

@SnootchieBootchies27 19 күн бұрын

Haven is the word you were looking for

@xliquidflames 21 күн бұрын

Isn't this how some scammers get money out of the country? I follow a couple of scam baiting channels where they try to foil the scam calls, email, text, ect. And if I remember right, in one video they tried to follow the money from grandma being duped into emptying her savings all the way to Nigeria or wherever the money ends up. At one point, they end up at a tiny building just like this where there's nobody working except one receptionist, and she just tells them there are 30 companies with that address, some of which are scammers.

@adamslater7486 20 күн бұрын

I wish you were on CBS Sunday morning news. You have the perfect vibes that show.

@knpark2025 10 күн бұрын

I wish I had this video to watch when I was taking my basic corporate finance class. I always wondered why all companies I had to look for their 10-K forms had "Delaware" somewhere within their first few pages, but back then I was too lazy to dig deeper about it than what my homework asked for.

@gustavohernandeza.890 24 күн бұрын

DELAWARE: Every day I'm corporatin'

@williamgoodrick4367 19 күн бұрын

Great video on something I knew nothing about. Thank you.

@NotADoctor558 23 күн бұрын

So you're telling me that Delaware's two biggest exports are tax evasion and money laundering?

@ryanortega1511 23 күн бұрын

Speaking of Delaware and DC, did you know that the cartoon ‘Steven Universe’ is set in an alternate universe version of the Delmarva Peninsula where it’s under one state?

@weldin 23 күн бұрын

And Metropolis is in Delaware too! I guess they just looked at the east coast and said “put it in the middle!”

@Dallior 24 күн бұрын

I know I shouldn't be surprised, but every Phil video is a hit in my book! Another banger

@EvenFilms 5 күн бұрын

I really love Batman’s business acumen and informed management reflections. 😂 Also, I can’t believe you got Gary Oldman to star in your video! Fantastic video as always, Phil.

@johnwoolley1965 23 күн бұрын

Great video Phil, always love your stuff. Just in case you’re not aware (and in case viewers don’t know), the Corporate Transparency Act was ruled unconstitutional by an Alabama federal court, and is currently in the briefing stage on appeal. Depending on how litigation goes down, that loophole may remain open for some time yet.

@PhilEdwardsInc 23 күн бұрын

yes and thank you! that was why i tried to include some vagueness in my description...but totally

@Sxcheschka 14 күн бұрын

I was telling my mom the other day that nobody thinks about Delaware being weird. Thank you Absurdity, you sly, coy stranger you.

@MarylandFarmer. 23 күн бұрын

lol that quick cutaway to the fountain.

@kversaci 23 күн бұрын

I deadass drive by this building every day on my way into work! I was shocked like the matrix was collapsing when I saw the thumbnail! Thank you for this fascinating look into its actual purpose!

@_AvaGlass 23 күн бұрын

9:35 Nailed that edit

@Trebor8586 23 күн бұрын

I'm pretty sure I pushed through an order for this address earlier today. I know it was in Delaware and I think it was in Wilmington.

@bff2109 24 күн бұрын

The electric tape rip is the best

@itsSandanuK 23 күн бұрын

skits like that are why we love Phill

@safetinspector2 23 күн бұрын

Who works in that building?!? What do they do there?!? We MUST KNOW!!!

@Game_Hero 16 күн бұрын

probably watching their phones all day

@kenshinjenna 23 күн бұрын

I knew so much about this story already... nearly every edyoutuber does it at some point on their channel, but I liked your twist on it. I also like the callout to the Dutch company - that is something I wasn't aware of.

@PhilEdwardsInc 23 күн бұрын

yeah i cringed at the topic a bit once i researched it, but i felt like the chancery court was really undercovered in the other videos, as was the general corporate law. and then there are some updates to the loopholes too. thanks for being patient with it!

@PSingletary 23 күн бұрын

dang! somehow i missed this notification, well glad I found it I've been aware of the role that Delaware has played, but not to this extent. Great title to capture the attention and honor the research you had to perfrom!

@TheSmark666 24 күн бұрын

In this episode, Phil finds out just how fun fictions of law can be!

@jalabi99 20 күн бұрын

The CTA only affects Limited Liability Companies (LLCs) and not corporations. And since most LLCs in the United States are single-member LLCs, the alleged "money laundering prevention" powers of the CTA don't really apply to them, and they certainly don't apply to corporations. Regardless of their good intentions, the CTA was essentially a waste of time and energy. Delaware being a "laboratory of corporate law" is a good thing for the nation. As just one example, Delaware was the first state to introduce the concept of the LLC, and of the Series LLC.

@bbartky 23 күн бұрын

Phil, Another great video! 👏 And I want to share the funny way I learned about this topic. When I was in elementary school one of my favorite TV shows was _Get _Smart_ . For those who don’t know, it was a satire of spy movies of the ‘60s where the good guys belonged to an agency called CONTROL and the bad guys belonged to an agency called KAOS. In one episode KAOS took over the airwaves and threatened the country, as they often did. At the end of the announcement the KAOS agent said, “KAOS, a Delaware corporation.” It wasn’t until late in high school that I understood the joke. 😂 EDIT I found the episode! It was episode #59, “A Man Called Smart, Part 2".

@PhilEdwardsInc 23 күн бұрын

hahah this was in my nick and nite circulation but i don't have as good memory retention. a very on point reference!

@gavinshickle1814 23 күн бұрын

So they finally settled on "Delawareans" as opposed to "Delawarites"? Good for them.

@mattwhaley1865 23 күн бұрын

Need to have laws on the books that state how many businesses can be in one building and these corporations need their assets seized and given back to the people.

@onemorechris 22 күн бұрын

i’m watching this video on Chancery Lane in London, where many lawyers and courts have been for 100s of years

@sarahwatts7152 24 күн бұрын

Batman in shorts is such a vibe

@SAnne-pc8hc 22 күн бұрын

Ah so the company that publishes most of the nursing textbooks I used also (checks notes) runs that building in Delaware.

@PhilippBlum 23 күн бұрын

Thanks. This is really an interesting perspective of it. I thought Delaware was just the place to go to avoid taxes. Of course it had to be a little more complex than that.

@thatRyzzle 15 күн бұрын

“… it's even worse-shell corporations.” “… yeah.” 😂

@ringkunmori 24 күн бұрын

Tl;Dr That many businesses can fit into a single building because all of them are clowns

@jandraelune1 22 күн бұрын

The health of the US economy needed those businesses to pay their taxes. Not for them to commit quazy legal tax fraud.

@AntranigVartanian 23 күн бұрын

I'd like to point out to the Americans in the comment section that we, the non-Americans, love Delaware! When I started my tech company I registered a C-corp in Delaware and this allowed us to do business faster in the States. And whenever we do contracts with companies in other states, we pay taxes! willingly! :D And then some of those taxes get back to us as part of the USAID program and majority goes to America. So it's a win-win!

@Hi.Im.Andrew 21 күн бұрын

I like your casio. And the video.

@PhilEdwardsInc 21 күн бұрын

thank ya! casio 4ever.

@KasFromMass 24 күн бұрын

Lot of kickbacks in Delaware...correction kickups.

@chrisroth4952 23 күн бұрын

Reminds me of the often sighted Maine registered semi truck trailers all over the road. Maybe another story to consider covering. I'm sure there are states that aren't happy that Maine essentially 'steals' their own registration fees from them.

@PhilEdwardsInc 23 күн бұрын

oh that's a good one!

@weldin 23 күн бұрын

The chancery court was also rather notable in the Jim Crow era. One of the cases that preceded Brown v Board (and was argued by one of its attorneys, Louis Redding) was argued at the chancery court because it involved segregation at the University of Delaware (all white at the time) who wouldn’t take black students, mostly forced to go to Delaware Dtatue University (still a historically black university). Two of the cases in Brown v Board also came from Delaware: One in Hockessin and one in Claymont.

@PhilEdwardsInc 23 күн бұрын

didn't run into this! thanks for mentioning.

@MrGreen-ci2mm 7 күн бұрын

Phil, what are your thoughts on Trump ? Not sure who to vote for Biden or Trump ?

@bartoscar 24 күн бұрын

I went frame-by-frame to catch all the map gags

@TheFakeMackie 22 күн бұрын

While you're talking registered agents, you could also talk about Wyoming. There's a particular agent there that's affiliated with dozens if not hundreds of business entities which have been accused of or associated with various fraud schemes, etc.

@groovygannon 23 күн бұрын

The covid bailout money was interesting. I found out the "family owned" business I worked for was dozens and dozens of corporations created to essentially always make it look like the visible businesses were losing money because these heretofore unknown to me businesses all owned by the same LLCs were taking all profits and of course covid loans. Money creates more money. That should be written on the Delaware flag.

@PhilEdwardsInc 23 күн бұрын

ha new motto!

@jljordan1 23 күн бұрын

A lot of credit cards companies are also based there or South Dakota because of usery laws.

@mikekjellman 19 күн бұрын

i pass San Francisco Standard every day on my way down to the office. i think of you.

@REzado63 22 күн бұрын

Damn Phil I live here. I drive past that building all the time. You should have reached out. 😁

@BenjamintheTortoise 23 күн бұрын

Too funny, the company I work for is filed in DE for the corporate law advantages as well... But I noticed your KZfaq handle is now PhilEdwardsInc... You don't want to go the DE LLC route??

@PhilEdwardsInc 23 күн бұрын

doesn't really benefit a small fry like me! though i am an llc. i'm just philedwardsinc because my name is too darn common.

@QuestionMan 24 күн бұрын

Whether I find ripping electrical tape satisfying hinges on what I'm using it for. Depending on the application, the way ripping deforms the tape can sometimes be like "arrrghhh!" Otherwise, yes. Yes I do.

@PhilEdwardsInc 24 күн бұрын

agreed. it does really take the rip harder - it's like you really made a dent in it

@mikaelameadows7408 24 күн бұрын

goated as usual

@JoelleTheAbsurdist 23 күн бұрын

It's green now!

@anon69_q 23 күн бұрын

Great video as always. This hits close to home figuratively and literally. Most of the people you shown, I have known for many years. You should look into the Delaware bar exam, and all the weirdness that comes with that. Also, the extra pink you added to the map covers Seaford, DE. They recently gave corporations the right to vote. I’ve known Mayor Genshaw before he was mayor. Finally, be careful about leaving things out in the open in Wilmington. Wilmington is pretty safe right now, so it isn’t that big of a deal. If you read this, you should do a video on how Delaware State had the Prime Minister of Jamaica give a commencement address. There’s a lot of history in that story.

@PhilEdwardsInc 23 күн бұрын

i will look into that jamaican delaware connection. the delaware law school situation is interesting to me too (though not the same as the bar obviously). my hotel was down the street from widener "delaware school of law" and it was pretty unique.

@anon69_q 23 күн бұрын

@@PhilEdwardsInc haha. My brother went to Widener. UD doesn’t have a Medical School or a Law School. UD couldn’t afford to purchase Widener Law. I remember years ago, when UD was considering it.

@PhilEdwardsInc 23 күн бұрын

@@anon69_q it was a crazy coincidence because i booked the wrong doubletree. the tgi fridays was good though haha, so i can't complain!