Wilmington, Delaware is a haven for major incorporations including 60 percent of all Fortune 500 companies. Delaware sports some really great tax incentives for companies. The state only imposes a corporate income tax on profits that are earned within the state. Subsidiaries operating elsewhere within the US don’t have to pay.
Wilmington also boasts a very sophisticated judicial system ripe for corporate work. A single low-rise brick building at 1209 Orange Street in Wilmington, Delaware is the legally registered office to over 200,000 companies including KFC, Ford, Coca-Cola, American Airlines, and General Motors. There are a few file cabinets visible within the building, but it is largely inactive for housing over 200,000 companies.
Companies simply keep an agent at the office who forwards everything on to the company to keep the tax benefits of being in Delaware.