Sergey Brin and Larry Page are moving business entities out of California ahead of a proposed wealth tax that could cost them billions.
Google has long been associated with Silicon Valley. After all, Sergey Brin and Larry Page founded their company in a garage in Menlo Park back in 1998. But now, the power duo is severing some of their connections to the state that made them extraordinarily rich.
In the 10 days before Christmas, an entity connected to Brin terminated or moved 15 California LLCs out of the state, according to documents reviewed by The New York Times. Seven of those companies were converted into Nevada entities.
Brin is following Page’s lead. More than 45 California LLCs associated with Page filed documents last month to either become inactive or relocate out of state.
The timing isn’t coincidental. A proposed California ballot measure would require residents worth more than $1 billion to pay a one-time tax equivalent to 5% of their assets. With the Google guys’ combined net worth exceeding $518 billion, that’s serious money at stake.
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Google has long been associated with Silicon Valley. After all, Sergey Brin and Larry Page founded their company in a garage in Menlo Park back in 1998. But now, the power duo is severing some of their connections to the state that made them extraordinarily rich.
In the 10 days before Christmas, an entity connected to Brin terminated or moved 15 California LLCs out of the state, according to documents reviewed by The New York Times. Seven of those companies were converted into Nevada entities.
Brin is following Page’s lead. More than 45 California LLCs associated with Page filed documents last month to either become inactive or relocate out of state.
The timing isn’t coincidental. A proposed California ballot measure would require residents worth more than $1 billion to pay a one-time tax equivalent to 5% of their assets. With the Google guys’ combined net worth exceeding $518 billion, that’s serious money at stake.
Sign up for the Entrepreneur Daily newsletter to get the news and resources you need to know today to help you run your business better. Get it in your inbox.
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Jonathan Small