Legal Article
- Incorporating in Delaware: Small State but Big Business
Have you noticed that every large company is incorporated in Delaware, if you have noticed that have you ever wondered why? The short answer is because our federalist system creates competition among states and free flowing commerce through the states. Federalism Makes States Compete Once incorporated in a state, a business may generally use that state’s laws to govern most of their interactions with their customers, even those customers who are out of state. Thus, most companies choose the state which has the most advantages for their business. Delaware has become the clear winner because of a mixture of its business laws, extensive case history, low taxes and … more
