Why 285,000 Companies Shared One Building in Delaware

In January 2024, a Delaware judge cancelled a $56 billion pay package for the richest man in the world. He told founders to stop incorporating in Delaware, and Tesla moved to Texas. Why did that scare a whole state? Because about a third of Delaware's general fund comes from companies that mostly don't live there. In this animated explainer we follow the money: how Delaware ended up with more companies than people, how it took the corporate crown from New Jersey, the three things it actually sells (the law, the Court of Chancery and the address), the franchise tax, the unclaimed money that flows to the state, the so-called Delaware loophole, and the 2024–2026 fight over "DExit": Senate Bill 21, the Supreme Court rulings, and whether companies are really leaving for Nevada and Texas. If you were starting a company tomorrow, would you pick Delaware, Texas or Nevada? Tell us in the comments. Figures are rounded and come from official reports; the share of the budget is our own calculation from Delaware's revenue tables. This video is an animated explainer, not legal or tax advice. Script, animation and editing by Postcard Economics. Created with AI-assisted tools, including the voice. CHAPTERS 0:00 A $56 Billion Paycheck, Cancelled 0:32 Guess: How Many Companies? 1:13 One Building, 285,000 Companies 1:34 How Delaware Took the Crown From New Jersey 2:23 What Delaware Actually Sells 3:30 Fact or Fiction 4:11 How the Money Works 5:05 The "Delaware Loophole" 6:03 The Court vs. the Richest Man 6:53 Delaware Strikes Back 7:38 Is Delaware Losing? 8:19 The Answer 8:33 Your Turn Next: how Orlando really makes money. #delaware #economics #business