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What my corporations professor said in law school was that if you were going to be a large public company incorporate in Delaware. For nearly anyone else incorp
by tzs 2y ago
What my corporations professor said in law school was that if you were going to be a large public company incorporate in Delaware. For nearly anyone else incorporate in the state where your business is located.
That was before the development of the current VC funded tech startup culture, so that probably needs to be modified to say something about incorporating where the people who are giving you the money tell you to.
- nilsbunger 2y agoIf VCs are giving you money they want you to try to become a large public company, so maybe no amendment is needed?
- refulgentis 2y agoThey still tell you Delaware; people are upset about the Elon decision. They still tell you Delaware because Delaware has a long tradition of protecting shareholders from corporate malfeasance.
- dragonwriter 2y agoThey also still tell you Delaware also (and why they tell you this particularly in law school) Delaware has the most well-developed body of corporate law, meaning (policy preferences aside) how to achieve particular goals with formal structure and outcomes of particular decisions are most predictable when Delaware corporate law is being applied, which mitigates risk for all parties.