You hear all of the time how most corporations form in Delaware because of the friendly incorporation laws. What, exactly, is so good about them?
And if they are so good, why hasn’t at least one other state try to outdo them? In other words, why doesn’t Nebraska pass corporate law like Delaware’s but 5% better to get the businesses in that state?
Here’s a whole document by the state of Delawarethat talks about it (warning, PDF)
The short answer is that Delaware established its incorporation laws very early and has more than 200 years of case law that the courts can refer to as precedent. Other states can (and do) copy the statutes, but they can’t copy all the precedents that have been settled in court.
Delaware also has tight secrecy laws, and few requirements for corps.
If you have at least $5 million in capital, Joe Biden will give your CEO a shoeshine.