Compliance Stuff

Thinking about where to incorporate your company? While Delaware has long been the go-to choice for startups formed as corporations in the US, we’ve observed that recent changes in the legal landscape and statements by public figures have led founders to take a look at other states – especially Nevada and Texas. Each state offers its own approach to corporate governance, director and  officer  liability, stockholder rights, and how business disputes are resolved, and the best choice depends on your company’s specific needs and priorities. The chart below highlights some of the key differences in corporate law among Delaware, Nevada and Texas to help you better understand what’s at stake when choosing your company’s legal home. Keep in mind, this chart only covers certain legal differences, but practical factors also matter and are worth considering with your legal counsel. For example, your current or prospective investors may prefer or just be more familiar with a certain s...

Why is the majority of Fortune 500 companies incorporated in the state of Delaware? Why are more than 75% of all new initial public offerings in the United States done by companies incorporated in Delaware? Why is Delaware able to generate more than 25% of its general fund revenue from the incorporation business? And, why have other states been unable to steal this business away from Delaware? Here are the top five reasons to form an artificial entity in Delaware. The Delaware court system is well established and highly respected. The Delaware Court of Chancery specializes in corporate issues and uses judges instead of juries. This means that in every litigation, a judge with a lot of expertise in complex corporate law matters will preside, and the opinions are relatively consistent. In addition, Delaware has historically and consistently been ranked one of the top judiciaries in the country. Delaware offers a lot of flexibility for structuring a business entity. Delaware’s corporate ...