Book Review: 1929 by Andrew Ross Sorkin
While 1929 by Andrew Ross Sorkin is not a traditional business or legal guide, it offers powerful lessons that are highly relevant for anyone involved in forming and managing Delaware LLCs and corporations. Through a detailed and engaging account of the events leading up to the 1929 stock market crash, Sorkin shows how optimism, poor risk assessment, and unchecked growth can quietly build into systemic failure — lessons that still apply to businesses today.
The book focuses less on abstract economic theory and more on the people behind the decisions: bankers, executives, investors, and regulators who believed the market would continue rising indefinitely. Easy credit, loose oversight, and widespread confidence created an environment where risks were ignored or misunderstood. For business owners forming new entities, this history underscores why structure, governance, and risk management matter from the very beginning.
One of the clearest takeaways from 1929 is that success without discipline often leads to vulnerability. Many businesses at the time were growing quickly but lacked safeguards, transparency, and accountability. This parallels what can happen today when companies rush to form entities without carefully considering liability protection, ownership structure, or long-term compliance. Delaware LLCs and corporations are popular precisely because they offer strong legal frameworks — but those protections only work when they are used intentionally.
Sorkin also highlights how decision-makers ignored early warning signs because growth felt unstoppable. This mindset is still common in modern business environments, especially during periods of rapid innovation or economic expansion. Forming a Delaware entity is often one of the first major steps a business takes, and 1929 serves as a reminder that optimism should be balanced with planning. Clear operating agreements, well-defined roles, and proper corporate governance are not formalities — they are tools for stability when conditions change.
Another important theme in the book is leadership responsibility. Many influential figures in 1929 had the power to slow risky behavior but failed to act decisively. For today’s business owners and incorporators, this reinforces the importance of choosing the right structure early on. Whether forming an LLC or a corporation, leadership must understand its legal duties, financial exposure, and compliance obligations to protect both the business and its stakeholders.
Ultimately, 1929 is valuable not because it predicts the future, but because it explains patterns that repeat. Markets evolve, technologies change, but human behavior remains consistent. For professionals working with Delaware LLCs and corporations, the book reinforces a core principle: strong foundations matter most before problems arise. Thoughtful entity formation, clear governance, and disciplined risk management are not reactions to crisis — they are the best way to prepare for it.
For more information on forming a Delaware LLC or Corporation, please visit delawareinc.com.
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