What are some of the advantages for a business to incorporate in Delaware?

Answer 1

Delaware offers corporations several advantages:
• Delaware allows a great deal of flexibility for corporations with respect to the management of the business. For example, if shareholders want to vote on a matter in writing rather than holding a meeting, Delaware law requires only a majority vote to agree. A Delaware court recently upheld the enforceability of bylaws that require shareholders who want to sue a company to file their lawsuits in Delaware, which is more convenient than being sued anyplace the company does business.
• Delaware has a special court called a Chancery Court that hears only corporate matters. The judges are experts in corporate law. Corporate cases in Delaware can get to trial quickly.
• Given this special court structure, a large volume of corporate law precedent has developed in Delaware. The precedent helps attorneys better advise their corporate clients since the law is well defined.
• Because very few businesses are actually based in Delaware, it is viewed as being a neutral place in which to try cases. None of the parties has a home court advantage.