It’s well known that Delaware is one of the most popular jurisdictions to form a new business, whether large or small. Delaware is the leading jurisdiction for publicly traded corporations listed on U.S. stock exchanges. But you may wonder why? Here are some of the most compelling reasons to choose Delaware:
The Advanced State of Delaware’s Business Statutes
Business and legal professionals in the United States generally consider Delaware to have the most favorable, forward-looking laws regarding business entities. It all started with corporations and the Delaware General Corporation Law but that has expanded to all types of business entities including LLCs, Partnership and Statutory Trusts (each with its own statute). Whichever entity you choose, Delaware’s statutory laws in this area are regularly reviewed and updated, with Delaware lawyers (including our own Michael Ledyard and Ross Antonacci) playing an active role in recommending and refining proposals for new legislation.
Our State Government is Focused on Business
Delaware’s legislature and Governor historically have been, and are today, receptive to the needs of business. Moreover, the Delaware Secretary of State’s office is a service-oriented organization. Among other useful services, the Secretary of State offers expedited document filing and processing; uses modern document imaging and retrieval technology, reducing response time; accepts document filings by electronic means; and permits remote access to the Secretary of State’s computer database by Delaware registered agents.
Our Courts are Top Notch
The Delaware Court of Chancery and the Delaware Supreme Court enjoy a worldwide reputation for excellence. The Court of Chancery is a court of equity that has existed for more than 200 years. It regularly handles corporate, alternative entity, and other sophisticated business cases. Moreover, Delaware has no intermediate appellate court – appeals are taken directly to the Delaware Supreme Court. And judges, not juries, decide all corporate cases. This structure results in expeditious review of trial court decisions. The Delaware courts’ experience with, and focus on, business matters result in unparalleled expertise. That expertise translates into efficient, prompt, fair, and more predictable resolution of disputes.
The Proof is in the Case Law
Delaware has a well-developed body of relevant case law. Our courts have a tradition of issuing reasoned written opinions supporting their decisions. The resulting body of case law provides detailed and substantive guidance to corporations and their advisors. This wealth of judicial decisions brings a greater measure of certainty and enhances predictability.
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