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But incorporating in Delaware doesn't make you immune to the laws of your home state. In fact, it allows people who want to sue you to potentially sue you in e
by zngtk4 17y ago
But incorporating in Delaware doesn't make you immune to the laws of your home state. In fact, it allows people who want to sue you to potentially sue you in either state, thus doubling the amount of applicable laws (and possibly forcing you to defend a lawsuit in Delaware, which would be expensive because of travel).
- tptacek 17y agoI believe that is very much not the case, but I'd welcome a credible citation to your claim.
- zngtk4 17y agoI could be wrong, but I got this from the book "Asset Protection" by Adkisson and Riser (well known attorneys in this area): Under state law, having a registered agent in the state of incorporation creates nexus sufficient to allow the corporation to be sued in that state. This fact alone may affect the decision where to incorporate. A jurisdiction where jury verdicts tend to be very conservative may be preferable to one with a reputation for runaway jury awards. The cost of defending a lawsuit may also be a significant factor in this decision. Defending a lawsuit in the owner's home state will be substantially cheaper than defending the same lawsuit across the continent [or as one person here says, across the world]. This may be a factor in deciding where to incorporate And you can always be sued in the state in which you are operating. So it seems that you can be sued in both states.