May
12

Why Move Your Corporate Headquarters?

By

In light of Superb Hosting, a now 13 year old provider of virtual and dedicated hosting solutions, moving to Hawaii earlier this year, I was asked why would you move your corporate headquarters and more to the point why move it away from your datacenters?

There are many reasons as to why moving is a good choice. The number one reason I often hear is for tax purposes. Moving the headquarters to a place like Nevada, Wyoming, or Delaware which is corporate friendly is a sound move as far as saving money is concerned. You see even if you incorporate or form an LLC in those states if you do main business in another state you will have to accommodate both. So by moving corporate over all their transactions are handled through only one state law.

Superb had two reasons for moving both are extremely valid in my opinion. One, the not talked about, but always threatening dollar problem. With the differences between the Canadian and US dollar, and the deflation of the US dollar, Superb was losing money as far as transactions went. A great deal of their customers are from the US, and six data centers in the US, on a money exchange basis, moving the corporate headquarters to the states makes sense… and dollars.

The reason that Superb has been publicly stating, and also a good one, moving the HQ to a Hawaii makes it easier for them to retain and attract employees. How many people who love to work in a place most people simply vacation too? The economic situation we have right now makes it all the more reason to find ways of holding onto key staff and entice the best staffers from other companies.

The last main reason which should be also taken into account is the cost and community of living in the area. For instance, how many staffers actually live in the same town and how many have to commute. Is the town the current HQ in dying out (increased cost, “brain drain,” etc.), et al are good reasons for leaving, but when moving to a new place they should also be taken into account.

Moving an HQ can provide long term benefit, but also know there are a lot of factors involved beyond the normal considerations of tax laws.

Categories : Features

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