Topline
Mark Zuckerberg’s Meta is considering a reincorporation from Delaware to a new state, according to multiple outlets, mulling the move less than a year after SpaceX and Tesla CEO Elon Musk took his companies’ incorporation out of Delaware and moved them to Texas.
Key Facts
Meta is in talks about moving its legal headquarters away from Delaware, according to Bloomberg, mulling the move from a state that has built a favorable reputation among corporations for its tax benefits and lax incorporation requirements.
The social media company has talked with Texas officials regarding a potential move to the Lone Star state, The Wall Street Journal reported, citing unnamed people familiar with the matter.
Meta has also considered a reincorporation in other states, the Journal reported, though it did not specify which states were up for consideration.
Meta told Forbes there are no plans to move its corporate headquarters, which is located about 30 miles south of San Francisco, California.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
Big Number
Over 60%. That is the share of Fortune 500 companies that were incorporated in Delaware as of 2023, according to CNBC. Some of the companies incorporated in the small state include Alphabet, Amazon and Comcast.
Forbes Valuation
We estimate Zuckerberg’s net worth at $237.8 billion, making him the third-wealthiest person in the world behind Amazon co-founder Jeff Bezos ($250.7 billion) and Musk ($421.7 billion).
Key Background
It is unclear why Meta is reportedly considering a move from Delaware, a long-established tax haven for corporations. The state has less red tape attached to incorporation processes, does not require corporations to pay state corporate income tax if they operate outside of Delaware and has a court of chancery explicitly designed to handle corporate law litigation. Musk reincorporated Tesla from Delaware to Texas after the former state’s court of chancery invalidated his $50.9 billion Tesla pay package, calling it excessive.
Further Reading
Meta in Talks to Reincorporate in Texas or Another State, Exit Delaware (WSJ)
Elon Musk Says Tesla Shareholders Support $50 Billion Pay Package ‘By Wide Margins’ (Forbes)
Musk Says SpaceX Has Moved State Of Incorporation To Texas Amid Feud With Delaware (Forbes)
