Corporate headquarters is where a company’s executives make key business decisions and run the business. It is distinct from satellite offices and is often where the CEO, CFO, and other key personnel have their offices. Activities include decision-making, financial and accounting maintenance, legal decisions, and tax filing. The headquarters may not be located where the business is incorporated, and companies typically do not have two headquarters.
Corporate headquarters, or main office as it is sometimes referred to, is where a company’s executives work and where many of the key business decisions are made. The corporate headquarters, in general, serves as the central business center from which a business is run. It is distinct from satellite offices and positions where other branches of the company work.
The chief executive officer, chief financial officer, and other key personnel in running the business often have their offices at headquarters. Corporate governance takes place there and these principal entities make decisions from these offices which are then communicated to others. Most of the company’s other subsidiaries or divisions generally report to the headquarters, and employees may periodically visit there for training or other instruction.
Activities typically performed at headquarters include making decisions about the direction and planning of the business. Much of a company’s financial and accounting information is typically maintained at corporate headquarters, where the accounting department is often located. Other activities conducted at a company’s premises include making legal decisions and filing taxes.
The corporate headquarters may or may not be located where the business is incorporated. A business is considered incorporated in the state in which the incorporation documents were filed. Many companies incorporate in the state of Delaware, even if their headquarters and business there are conducted elsewhere. The reason many businesses choose to file their incorporation paperwork in Delaware relates to the special laws that apply to businesses within the state. In Delaware, corporate matters and corporate lawsuits are handled in separate court systems, and Delaware’s laws are widely considered to be more business-friendly than the laws of other states.
Headquarters is often selected by company founders to be conveniently located where they live. Branches can then be opened, either locally, within the country or internationally. Companies, however, typically do not have two headquarters, even if they are international companies, although they may have subsidiaries that take on some of the responsibility for making business decisions in other countries. For example, if a company is headquartered in New York but has an office in London, the company can allocate a specific location in London to serve as its London headquarters and to perform the tax function and legal compliance function in the UK.
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