Delaware Corporation Laws

Delaware corporation laws bring many different corporations to the state of Delaware--in the technical sense, at the very least. The most important of Delaware corporate laws is that which stipulates that corporations need not be located in Delaware to be incorporated in Delaware. A businessperson can, in fact, incorporate his or her business in Delaware without ever having entered the state even once.

Incorporating in Delaware, however, would not be attractive to out-of-state businesses unless there were business friendly laws in the state. Delaware business laws are among the most advantageous in the country. Such a statement is amply reflected in the fact that roughly half of the businesses listed on the New York Stock Exchange chose to incorporate in Delaware.

The Benefits of Delaware Corporation Laws

"Limited liability" laws are among the most useful business laws in existence. The liability in this case involves the personal liability of the owners of a company. In setting up an LLC (Limited Liability Corporation), owners are able to divide their personal assets and the assets of their corporations. Only business assets will be considered when debts must be paid (such as when a company goes bankrupt).

Another positive legal aspect of incorporating in Delaware has to do with the state Court of Chancery, which resolves business-related legal disputes. The Court of Chancery is not set up as in the typical judge-and-jury format. Cases are decided instead by judges who are chosen specifically for their business-law expertise. Each decision is rendered not as a verdict but rather as a written opinion, making it easy for companies to research their standing when it comes to important aspects of business law.