Delaware basically operates like a tax haven. It allows companies to avoid taxes in other states by shift royalty profits to Delaware. It is also extremely po

Delaware basically operates like a tax haven. It allows companies to avoid taxes in other states by shift royalty profits to Delaware. It is also extremely popular as a location of shell corporations because of secrecy laws. To form a company in Delaware you are barely required to give any information. I'm not denying that there are also network effects but if you got ride of the tax benefits and secrecy those network effects would go too.