The Duke and Duchess of Sussex have established a network of 11 companies in the tax haven state of Delaware, as they look to expand their lucrative business interests in the United States.
The companies appear to have names with sentimental value to the Duchess’s long-time attorney Richard Genow and her business manager Andrew Meyer and were incorporated by the Duchess’s long-time attorney Richard Genow and her business manager Andrew Meyer.
Peca Publishing LLC and Orinoco Publishing LLC are two of the publishing listed companies.
The name Peca, which was used to keep the rights to the Duchess’s children’s book ‘The Bench,’ means ‘freckle’ in Spanish and may refer to the first book she wrote as a child, titled ‘A face without freckles is a night without stars.’
The rights to the Duke’s much-anticipated memoir, due out later this year, are expected to be held by Orinoco Publishing LLC. According to The Telegraph, the name is a reference to one of Princess Diana’s favorite songs, Orinoco Flow by Irish singer Enya, rather than the river that runs through Colombia and Venezuela.
The Duke recalled his mother listening to Enya while driving in her BMW with the roof down in a 2017 ITV tribute to the Princess of Wales.
Hampshire LLC could be named after the location in the United Kingdom where they spent three nights in the final weeks of the Duchess’s first pregnancy in Spring 2019, and Baobab Holdings LLC could be named after the Baobab tree, which is native to Africa and Australia – places the Duke enjoyed spending time on his gap year and in later life.
According to experts, there are several benefits to incorporating a business in Delaware, including the state’s flexible business laws and low personal income tax rates.
The northeast state is known for having more corporations than people, with nearly 65 percent of Fortune 500 companies incorporated there.
While the officers and directors of a company must be identified, the actual owner is not required to do so.
Delaware does not impose income taxes on corporations that are registered in the state but do not conduct business in the state. Furthermore, shareholders who do not live in Delaware do not have to pay tax on shares held in the state. This is why it has earned the name “domestic tax haven.”
It is unlikely that the Duke or Duchess of Sussex have ever visited Delaware, where US President Joe Biden served as a senator from 1973 to 2009.
Sussex’s primary business is run through their charitable organization, Archewell, which has its headquarters in Beverly Hills.
According to them, the name is derived from the Ancient Greek word “Arche,” which means “source of action,” and the English word “well,” which means “a plentiful source or supply; a place we go to dig deep.”
According to tax records, the Archewell foundation raised less than $50,000 (£36,947) in 2020.
The Sussex high-profile entertainment deals with Netflix and Spotify have been facilitated by Archewell Audio LLC and Archewell Productions LLC.
However, the £18 million deal with Spotify has reportedly left executives at the streaming giant puzzled because the couple has only released one full-length podcast in two years.
A statement from the company in 2020 said: “In 2021, The Duke and Duchess will produce and host podcasts that build community through shared experiences and values. The first complete series from Archewell Audio and Spotify is expected next year and will be available to stream for free on Spotify.”
Throughout the year, the Duke and Duchess did not post a single minute of content on the platform.
Cobblestone Lane LLC, which was used on the Archewell trademark application, is another Delaware-incorporated company first reported by Mail Online.
Cobblestone Lane is also the name of a Bobbi Brown eye shadow palette. The Duchess joined the makeup mogul in the back of a taxi in 2016 for an ‘on the go’ retouching campaign.
The Duke and Duchess’s latest moves are consistent with their recent actions. The Duchess’s company, Frim Fram Inc, was moved out of California and incorporated in Delaware two years ago, according to The Telegraph.
Alan Stachura, from financial services firm Wolters Kluwer, said at the time: “Typically the expectation would be that taxes would be higher in California than Delaware.”
Mr. Stachura, who helps companies incorporate in Delaware, added that the state offers “a tax benefit for items like trademarks and royalties”.
Bridgemount LLC, RPV Holdings LLC, and IPHW LLC are among the other companies the couple has formed.
Nemawashi Holdings LLC was formed in September 2020 and is only described as a “holding company.” Nemawashi is a Japanese term that refers to the unofficial process of quietly laying the foundations for a project.
Buckingham Palace did not respond to a request for comment.
