Which state was domicile to more than 63% of the Fortune 500 companies and also the choice of 86% of all new Initial Public Offerings in 2011? You’re right. Delaware!
There isn’t just one reason why Delaware has long been the favored state for incorporating. This enviable position is because of the State’s total package of incorporation services, including fair and flexible laws, a responsive state government, and a unique court of Chancery that has 200 years of case law which has refined and literally defined “Corporate Law” for two centuries.
Delaware’s centuries old Court of Chancery has written most modern U.S. case law while interpreting Delaware’s General Corporation Law, which is known as the most usable and advanced business formation statute in the nation. The Delaware Division of Corporations in this business-friendly state provides state-of-the-art service to customers.
The Division’s 2011 Annual Report, summarized below, reviews progress, developments, and marketing efforts, which keep Delaware the premier state for incorporations.
The total package, combining Delaware’s General Corporation Law and LLC law, Court of Chancery, and Division of Corporations working together, make Delaware the leading home for entities today.
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.