Why would a company have a physical headquarters in one state but file for incorporation in another state? O Employees pay income taxes based on the rates of the chartering state, so a company may choose to charter in a state with lower income taxes. O Customers trust large companies, so a company may choose to charter in a separate state to give the appearance of being a national company. O Interstate litigation is very complex, so a company may choose to charter in a separate state to make it more difficult to sue the company. O States vary in the laws that govern corporations, so a company may choose to charter in a state with more favorable corporate laws.

Why would a company have a physical headquarters in one state but file for incorporation in another state? O Employees pay income taxes based on the rates of the chartering state, so a company may choose to charter in a state with lower income taxes. O Customers trust large companies, so a company may choose to charter in a separate state to give the appearance of being a national company. O Interstate litigation is very complex, so a company may choose to charter in a separate state to make it more difficult to sue the company. O States vary in the laws that govern corporations, so a company may choose to charter in a state with more favorable corporate laws.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter24: Multistate Corporate Taxation

Section: Chapter Questions

Problem 2BCRQ

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