Thursday, November 21, 2013

Why Delaware?

When teaching on entity formation, my students often ask why so many companies choose Delaware.  Numerous academics have attempted to answer that question, and now the Official Website of the First State [Delaware] lists reasons why it thinks businesses choose Delaware.

The listed reasons are:

  1. The statute
  2. The courts
  3. The case law
  4. The legal tradition
  5. The Delaware Secretary of State

No new claims here, but interesting to see how the state sees (or promotes) its advantages. 

The webpage also includes a blog, entitled "Delaware Corporate and Legal Services Blog," which only has a few posts so far, but may be worth tracking. 

H/T: Francis Pileggi

http://lawprofessors.typepad.com/business_law/2013/11/why-delaware.html

Corporations, Haskell Murray | Permalink

Comments

The creation of the website itself points to another, more subtle, reason: Delaware is the only state actively competing for out-of-state formations.

Posted by: Mohsen Manesh | Nov 21, 2013 1:47:26 PM

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