It's the most established just because that's where most corporations have incorporated. Corporations don't want any surprises when it comes to legal dealings,

It's the most established just because that's where most corporations have incorporated. Corporations don't want any surprises when it comes to legal dealings, so it's very attractive to incorporate in a place where most plausible scenarios have been tried and resolved in court previously. There are a number of legal reasons for incorporating in Delaware (in addition to the favorable tax situation): http://en.wikipedia.org/wiki/Delaware_General_Corporation_Law http://en.wikipedia.org/wiki/Delaware_General_Corporation_La... The short summary is: A long history of legal precedence, a separate court for corporate law which ensures a judiciary that is deeply familiar with corporate law, and the State of Delaware has generally corporation friendly laws. In the United States, corporations are held to the laws of the state they are incorporated in, even if they do business in all 50 states.