# What is so good about Delaware Incorporation Laws?

**URL:** <https://boards.straightdope.com/t/what-is-so-good-about-delaware-incorporation-laws/598397>\
**Category:** Factual Questions\
**Created:** [October 3, 2011, 2:25am UTC](https://boards.straightdope.com/t/what-is-so-good-about-delaware-incorporation-laws/598397 "2011-10-03T02:25:29Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![UltraVires](https://avatars.discourse-cdn.com/v4/letter/u/ecccb3/32.png) [@UltraVires](https://boards.straightdope.com/u/UltraVires)\
**Post date:** [October 3, 2011, 2:25am UTC](https://boards.straightdope.com/t/what-is-so-good-about-delaware-incorporation-laws/598397/1 "2011-10-03T02:25:29Z")

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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?

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**Author:** ![Kent\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kent_clark/32/105_2.png) [@Kent\_Clark](https://boards.straightdope.com/u/Kent_Clark)\
**Post date:** [October 3, 2011, 2:50am UTC](https://boards.straightdope.com/t/what-is-so-good-about-delaware-incorporation-laws/598397/2 "2011-10-03T02:50:07Z")

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Here’s a whole [document by the state of Delaware](http://corp.delaware.gov/whycorporations_web.pdf)that 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.

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**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\
**Post date:** [October 3, 2011, 2:52am UTC](https://boards.straightdope.com/t/what-is-so-good-about-delaware-incorporation-laws/598397/3 "2011-10-03T02:52:00Z")

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Delaware also has tight secrecy laws, and few requirements for corps.

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**Author:** ![Elendil\_s\_Heir](https://avatars.discourse-cdn.com/v4/letter/e/7cd45c/32.png) [@Elendil\_s\_Heir](https://boards.straightdope.com/u/Elendil_s_Heir)\
**Post date:** [October 4, 2011, 2:30pm UTC](https://boards.straightdope.com/t/what-is-so-good-about-delaware-incorporation-laws/598397/4 "2011-10-04T14:30:33Z")

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If you have at least $5 million in capital, Joe Biden will give your CEO a shoeshine.