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For the past 11 years, the U.S. Chamber of Commerce has ranked the 50 states’ legal systems and corporate law structure as a whole. The Delaware legal climate is unique in that it has ranked No. 1 for the 11th year in a row.
The survey, generated by the United States Chamber Institute for Legal Reform, polled judges, attorneys, professors, and others for opinions on which state offers the best structure. Many states that are supposedly "corporate friendly," such as Nevada, are buried deep in the list and continue to decline year after year, while Delaware flourishes.
The report also pointed out cities or regions with the least favorable business environments. Chicago/Cook County, Ill., Los Angeles, San Francisco, the state of California in general, and Philadelphia, were voted as having the worst jurisdictions.
After reading this report, it's not surprising that a good portion of our business comes from California, considering their law structure is one of the absolute worst! Residents of Delaware are grateful for the strong corporate law structure their state has created because it benefits each and every resident. Over 25 percent of Delaware’s income can be attributed to the Division of Corporations.
This strong corporate law structure protects individuals behind the company--the shareholders, the Directors and the officers--which is why people from all around the world come to Delaware to incorporate. The state of Delaware will continue to keep its legal infrastructure on the cutting edge through consistent judgments, andby keeping a reasonable and fair legal environment for Delaware corporate entities. Review the full report here!
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.