That's to take advantage of Delaware's well fleshed out corporate law, not to avoid paying any taxes. I pay more in taxes to do that, in fact.

That may be some, but a good chunk of companies save a lot of tax dollars by doing this (according to http://www.nytimes.com/2012/07/01/business/how-delaware-thri... among others).

Delaware, Nevada, etc. let you skip STATE tax but your corporation would still be based in the United States and Federal taxes would still be due.

If Mark Cuban resides in Texas then the net effect of lower tax revenue in the state of Delaware should be almost zero to him personally.

> Delaware, Nevada, etc. let you skip STATE tax but your corporation would still be based in the United States and Federal taxes would still be due.

It's not that simple, and it doesn't allow corporations to skip state taxes. I only know Texas' law in detail, but Texas imposes franchise taxes on all companies "transacting business" within the state. Basically, any company with a physical presence in Texas is considered to be "transacting business" and may be subject to franchise tax. So, if your entire operation is in Texas it doesn't matter if you incorporate in Texas or Delaware, you are going to pay Austin the same.

Or companies that aren't repatriating their profits to avoid paying US tax?