11.1 Corporate Form of Organization Why would a company have a physical headquarters in one state but file for incorporation in another state? O States vary in the laws that govern corporations, so a company nay choose to charter in a state with more favorable corporate laws. O Customers trust large companies, so a company may choose to charter in a separate state to give the appearance of being a national company. O Employees pay income taxes based on the rates of the chartering state, so a company may choose to charter in a state with lower income taxes. O Interstate litigation is very complex, so a company may choose to charter in a separate state to make it more difficult to sue the company. Save for Later