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Companies Moving Out of Delaware
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Delaware has long been a hotspot for many Fortune 500 companies in the United States. As of 2023, this state was home to nearly 67.6% of all Fortune 500 companies. However, since 2024, a notable shift has emerged: some companies have physically relocated their operations out of Delaware, while others, still based elsewhere, are choosing to re-incorporate in different states.
Many of these companies are well-known and thriving in the tech industry. But where exactly are they heading, and why are they leaving Delaware behind?
Where are most businesses moving to?
While these corporations are fleeing to many different states, three are very prominent: Texas, Nevada, and Florida. The following research shows some companies that moved to these three states.
Texas
Since 2024, many entrepreneurs have considered forming a corporation in Texas to avoid Delaware’s strict business regulations and higher fees.
The prominent leader of the entire movement, Tesla, is one of the biggest companies to reincorporate out of Delaware. The multi-billion dollar electric vehicle company faced denial from the Delaware Court of Chancery for a nearly $56 billion compensation package. This conflict led the owner of Tesla, Elon Musk, to set his eyes on Texas as a new business partner. Texas’s rival court system, lower taxes, and fewer overall regulations made it especially attractive to the company. Elon asked for approval from his shareholders to make the move, which they granted later in June 2024.
Unsurprisingly, SpaceX, owned by Elon Musk, also reincorporated its business from Delaware to Texas on February 14, 2024. Incorporating in Texas allows SpaceX to pursue its goal of developing affordable spacecraft without worrying about additional taxes, fees, and regulations.
Another large company seeking to leave Delaware is Meta Platforms, the parent company of popular apps such as Instagram, Facebook, and WhatsApp. The company worries that Delaware will threaten its shareholders’ rights and corporate governance capabilities, leading to its discussion of reincorporating in 2025. Meta feels a state like Texas will provide a more favorable legal and regulatory environment.
Companies moving to Texas in 2024 – 2025
| Company | Company description | Company status | Number of employees | Moved from | Move date |
|---|---|---|---|---|---|
| Tesla | An innovative electric car company focused on sustainable energy | Public | 121,858 | Delaware | Headquarters moved June 2024 |
| SpaceX | Revolutionizes space travel and rocket technology | Private | 1,000 to 5,000 | Delaware | February 14, 2024 |
| X | Social media platform for sharing news and ideas | Private | 2,840 | California | September 13, 2024 |
| KFC | Worldwide fast-food chain famous for its fried chicken | Public | 820,000 | Kentucky | February 18, 2025 |
| Realtor.com | Helps people buy, sell, and rent homes online | Public | 2,000 | California | February 6, 2025 |
| Chevron | An energy company focused on oil, gas, and renewables | Public | 45,298 | California | August 2, 2024 |
| Ryde | Makes wellness shots with natural ingredients for energy and health | Private | 51 to 200 | North Carolina | 2024 |
| Graze Inc. | Develops robotic mowers for commercial landscaping and sustainability | Private | 212 | California | April 2024 |
| Verily Life Sciences LLC | Develops health technology solutions using data, AI, and research | Public | 1,360 | California | 2024 |
| LiquidStack | Provides advanced liquid cooling solutions for data centers | Private | 51 to 200 | Massachusetts | March 22, 2024 |
| Sourceability | Enhances supply chain transparency using blockchain and data technology | Private | 350 | Florida | 2024 |
| Nation’s | A fast-food chain serving burgers, fries, and shakes | Private | 201 to 500 | California | 2024 |
| Professional Bull Riders Inc. (PBR) | Organizes competitive bull riding events globally | Private | 142 | Colorado | 2024 |
| Peak6 Investments LLC | Specializes in trading, investments, and ventures | Private | 1,001 to 5,000 | Illinois | January 1, 2025 |
| Thoughtful Automation Inc. | Specializes in custom automation solutions for businesses’ efficiency | Private | 51 to 200 | Illinois | 2024 |
| Diversified | Helps clients by providing various products and services across industries | Private | 2,600 | New Jersey | October 30, 2024 |
| Hive Digital Technologies | Provides AI-driven solutions for business optimization and growth | Private | 20 | Canada | December 31, 2024 |
| ABBYY | Develops AI-driven document processing and data extraction software solutions | Private | 925 | California | October 10, 2024 |
| Assa Abloy | Provides access solutions, including locks, doors, and security systems | Public | 51,000 | Connecticut | October 2024 |
| FreshRealm | Delivers fresh, ready-to-eat meals for grocery retailers and consumers | Private | 1,089 | California | 2024 |
| Kane Robotics Co. | Develops autonomous robotic systems for industrial and commercial applications | Private | 11 to 50 | California | 2024 |
| Simplilearn | Offers online courses for professional skills and certifications globally | Private | 3,100 | California | October 23, 2024 |
| Resources Connection Inc. | Provides consulting services for businesses in various industries | Public | 2,600 | California | November 1, 2024 |
| Canoo | Designs electric vehicles focused on innovation and sustainable transportation solutions | Public | 201 to 500 | California | 2024 |
| IntraBio Inc. | Develops therapies for rare neurodegenerative diseases and related conditions | Private | 11 to 50 | United Kingdom | 2024 |
| 84 Lumber | Supplies building materials and construction products for professionals and homeowners | Private | 5,000 to 10,000 | Arizona | April 22, 2024 |
| Koya Medical Inc. | Develops innovative medical devices for respiratory and patient care | Private | 113 | California | 2024 |
| TMEIC Corporation Americas | Provides industrial automation and energy solutions worldwide | Private | 1,000 to 5,000 | Virginia | March 2025 |
| Psychemedics | Offers drug testing services using hair analysis technology | Public | 201 to 500 | Massachusetts | January 2, 2024 |
| NYSE | A global stock exchange facilitating securities trading | Public | 13,222 | Chicago | Planning reincorporation in 2025 |
Nevada
In recent years, incorporating in Nevada has become another popular option for those seeking to move their companies out of Delaware.
As another company owned by Elon Musk, Neuralink was also likely to leave its original home state. Unlike SpaceX and Tesla, the brain implant company has moved to Nevada. Elon completed this move on February 8, 2024.
While they haven’t yet made the move, Dropbox has recently started planning to reincorporate in Nevada, thanks to the state’s lower taxes. The company notified its stockholders about the approved migration on January 28, 2025.
Pershing Square Capital Management’s owner, Bill Ackman, has also announced plans to reincorporate in Nevada on X on February 1, 2025. While Ackman has said little information about this move, the shift in location was likely encouraged by other major tech companies’ movement out of Delaware.
Cloud-based advertising company The Trade Desk has found Delaware to no longer be a business-friendly state for their corporation. The Trade Desk successfully moved its company from Delaware to Nevada on November 6, 2024.
TripAdvisor has been trying to move out of Delaware since 2023. The company struggled through many court challenges for the ability to move its company to Nevada on February 20, 2024. TripAdvisor’s movement out of Delaware benefited the company financially and led to a key legal judgment that may shape the future of many Delaware corporations.
- In Palkon v. Maffei, two shareholders challenged TripAdvisor’s decision to move its corporate headquarters from Delaware to Nevada.
- These shareholders argued that it would only benefit Greg Maffei, the top shareholder in the company.
- While the company was allowed to move, the Delaware Court of Chancery continued its investigation into the case. The court initially agreed with the shareholders, but the Delaware Supreme Court overturned this rule on February 4, 2025.
- Thanks to this ruling for business judgment-related decisions, it has become much easier for other corporations to move out of Delaware.
Companies moving to Nevada in 2024 – 2025
| Company | Company description | Company status | Number of employees | Moved from | Move date |
|---|---|---|---|---|---|
| Antaira Technologies | Provides industrial networking solutions and communication equipment for businesses | Private | 11 to 50 | California | July 15, 2024 |
| Remark Holdings, Inc. | Develops AI-powered solutions and technologies for various industries | Public | 88 | Currently discussing moving from Delaware | Discussion held December 30, 2024 |
| Gaxos.ai Inc. | Uses AI to optimize supply chain and business operations | Private | 11 to 50 | Currently discussing moving from Delaware | Discussion held December 27, 2024 |
| Marketer on the Run | Offers digital marketing services and content management for businesses | Private | 2 to 10 | Wisconsin | Planning on moving in 2025 |
| Eightco Holdings Inc. | Invests in technology and financial services companies for growth | Public | 11 to 50 | Attempted to move from Delaware, denied by shareholders | Discussion held January 16, 2025 |
| Revelation Biosciences Inc. | Develops therapies for immune-related diseases and health conditions | Public | 9 | Currently discussing moving from Delaware | Discussion held January 17, 2025 |
| PMGC Holdings Inc. (Formerly Elevai Labs Inc.) | Operates a biopharmaceutical, research and development, and investment firm | Private | 2 to 10 | Delaware | December 20, 2024 |
Florida
Many companies incorporate in Florida thanks to the Sunshine State’s favorable business landscape. While it is not as popular as Texas or Nevada for more recent incorporations, the state is still on the radar for many businesses looking to relocate.
Trump Media & Technology Group recently announced its plans to move out of Delaware in late April 2025. Following in the footsteps of many others, Trump Media & Technology Group hopes to have access to more partnerships and growth opportunities outside of Delaware.
Foot Locker is one of the larger companies that chose to move their business to Florida. The company hopes to move its headquarters from New York to St. Petersburg, Florida, in late 2025 to help save costs and increase third-party collaboration.
Companies moving to Florida in 2024 – 2025
| Company | Company description | Company status | Number of employees | Moved from | Move date |
|---|---|---|---|---|---|
| VSE Corporation | Delivers engineering, logistics, and supply chain solutions to the aerospace and fleet industries | Public | 2,228 | Virginia | November 21, 2024 |
| Varonis Systems | Specializes in data security, analytics, and protection software | Public | 2,200 | New York | First quarter of 2025 |
| Boge Group | Offers interest funding services to businesses | Private | 11 to 50 | Nevada | Fourth quarter of 2025 |
| Apple | Designs and manufactures consumer electronics, software, and digital services | Public | 164,000 | Not leaving but heavily increasing its presence in Florida | January 24, 2024 |
| Anaplan | Provides cloud-based business planning and performance management solutions | Public | 2,000 | California | Early 2024 |
| Assurant | Offers risk management, insurance, and related services to businesses | Public | 13,600 | Georgia | June 2025 |
| Leashes End | Provides a comfortable home to senior pets | Private | No employee information available | Maryland | February 4, 2025 |
Why would a business change location?
There are many reasons these companies are fleeing the once-business-oasis of Delaware. Some of these reasons include:
- High tax rates: Delaware’s business taxes are much higher than other states. At a whopping 8.70% corporate income tax rate in 2025, Delaware had the lowest corporate tax rank of all states. Because of these taxes, many companies favor moving to new states to save more money.
- Fewer rules and regulations: Some states have fewer business rules or regulations than Delaware, making company growth easier. Many companies moving out of Delaware are in the tech industry, which is often known for its rapid development and expansion.
- Better business opportunities: Moving from Delaware to another state has given some businesses better access to talented workers, resources, and partnership opportunities. These opportunities greatly benefit the company’s ability to grow quickly and expand its networks.
Why are these three states so popular?
Now that we know why the companies are leaving their home states, why are many of them choosing Florida, Texas, or Nevada?
Texas is appealing because it ranks 7th on the Business Tax Climate Index and has no corporate tax. This lack of corporate tax allows companies to save on business expenses and activities, allowing for more growth and expansion opportunities. Texas also has fewer regulations on businesses, further contributing to companies’ abilities to save money and grow. As one of the leading states for energy generation, aerospace, technology, and healthcare industries, Texas also offers many business opportunities that other states cannot.
Texas has a strong business environment and offers many incorporation incentives to companies in different industries. For information on incentives and programs that help businesses succeed, visit the Texas Economic Development & Tourism Office’s website.
Nevada is ranked 17th on the Business Tax Climate Index and has no corporate tax. Like Texas, companies can spend more earnings on expanding their businesses than paying extra taxes. Nevada also has low business regulations, making starting or operating a company easier. Whether moving to Las Vegas for its strong entertainment industry or to Reno for its growing tech sector, Nevada offers many opportunities for new business incorporation.
Nevada is a business-friendly state with several programs to help fund new companies. To learn more about Nevada’s business incentives and grants, visit the Nevada Department of Business and Industry website.
Florida is ranked 4th on the Business Tax Climate Index and has a 5.5% corporate tax rate. This low rate and Florida’s lack of state income tax allow corporations and their owners to save more money. Thanks to a strong workforce and a sizeable customer base, specific industries like technology, real estate, and tourism thrive in Florida’s business environment. There is also potential for significant tech industry growth in cities like Miami, making this a lucrative spot for these companies.
Florida is also well known for various pro-business regulations and incentives for new business startups. For more information on specific incentives, visit Florida’s Economic Development Incentives Portal.
Which state is the best to incorporate in?
While Texas, Nevada, and Florida are great locations for new incorporations, they aren’t the only options. Other states with supportive business environments include:
- Alaska: Companies incorporated here enjoy no state income tax, incentives for resource-based industries, and access to federal grants.
- Wyoming: With no state income tax, low business fees, and strong asset protection laws, Wyoming is a top choice for incorporation.
- South Dakota: Businesses benefit from no corporate income tax, low regulations, and firm trust laws that attract investors.
Understanding the best states to incorporate in can help you make the best decision for your company.
The future of business incorporation in Delaware
Many large businesses swarming out of Delaware will cause a big hit to the state’s “most business-favorable” status. High-profile tech exits—like Tesla and SpaceX—could make the state less attractive to new businesses.
Delaware’s famed court system, once a draw for predictable rulings, is under fire for overreach. More rules, regulations, and now this? It’s enough to make any CEO pause.
Delaware’s losses aren’t just financial—its incorporation fees are a lifeline—but also symbolic. One ruling shifted the game, and Musk’s megaphone amplified the fallout.
The golden status as the #1 state for incorporation is now in doubt.
One ruling…that’s all it took, in this case.
How much does it cost to incorporate in another state?
Whether you’re struggling with high tax rates or can’t secure a strong position in your industry, deciding to reincorporate to a different state can save your business a lot of money. Each state has various costs associated with its paperwork filings, taxes, and other necessary business expenses. Understanding the cost of incorporation in your desired state will be essential for your corporation to succeed.
If you want to incorporate or reincorporate your business, MaxFilings professionals are here to help. We offer a FREE basic business bundle + the price of state fees. We will even provide you with a year of registered agent services free of charge.
Ready to take control of your business’s success? Let MaxFilings help you in your incorporation journey today.
