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Delaware is relatively business friendly and has a huge amount of established historical precedent in its case law. It’s important for companies, lawyers, inve
by tyre 3y ago
Delaware is relatively business friendly and has a huge amount of established historical precedent in its case law.
It’s important for companies, lawyers, investors, and executives to minimize unknowns in outcomes. They generally know how any normal—and many many atypical—legal disputes will end up.
This extends to tax and reporting requirements involved. There’s a well worn path from founding through IPO as a Delaware C Corp.
If you’re going to change from that, you certainly can, but the question is: why?
- initramfs 3y agoI would say almost more than relatively business friendly :) The above commenter's link mentions the Chancery Court: "The Delaware Court of Chancery is the oldest business court in America, uses judges instead of juries (which speeds up legal proceedings considerably) and maintains the most advanced and up-to-date case law, which corporate lawyers in Delaware rely on and refer to. This means that Delaware LLCs and corporations owners/shareholders will have decreased liability and litigation." Also, https://en.wikipedia.org/wiki/Delaware_Court_of_Chancery https://en.wikipedia.org/wiki/Delaware_Court_of_Chancery "Since 2018, the court consists of seven judges. The court is known being a hub for corporate governance litigation in the United States, as two-thirds of Fortune 500 companies are incorporated in Delaware." "The history of the Court of Chancery stems back to the English common law system, in which separate courts were established to hear law and equity matters. English law courts included the Court of King's Bench (or Queen's Bench when the monarch was female), the Court of Common Pleas, and the Court of the Exchequer. The sole English court of equity was the Court of Chancery."