The New York Times Sunday Paper, last week, published an article about Incorporating in Delaware that was misleading. http://www.nytimes.com/2012/07/01/business/how-delaware-thrives-as-a-corporate-tax-haven.html?_r=1&nl=todaysheadlines&emc=edit_th_20120701
This infographics corrects those myths because it highlights the real reason people incorporate in Delaware, because of liability protection. Delaware is the ultimate bullet-proof jacket. The US Chamber of Commerce has rated Delaware number one in every category since it started ranking judicial systems.
Delaware is the corporate capital of Main Street and Wall Street. Delaware has an environment which allows businesses small and large to prosper because it allows business managers to take risks without fear of personal liability. Other states have “thinner bullet proof jackets”. This Delaware protection is called the “business judgment rule” and provides the manager protection in most instances, provided there is good faith and no self-dealing. This protection is upheld by a business court called the “Court of Chancery” which is comprised of judges who, when nominated by the Governor, are required to be sophisticated corporate lawyers.
If you form a company in Delaware the laws that govern the “internal affairs” of the company will be Delaware laws, no matter where your company does business. This is affirmed in the United States Chambers of Commerce study on legal systems, which has rated Delaware number one each time it has ranked state legal systems. This will help you in the future when you need it.
About the Author: John L. Williams
Delaware Business Lawyer
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John L. Williams, Esq. helps small business owners through all stages of their business. From formation and choice of entity, to contract drafting and negotiation, he holds annual meetings with certain corporate clients. He helps business owners with estate planning. When partners go separate ways, he has experience in unwinding the LLC and corporation.
He enjoys drafting corporate documents to avoid future disagreements and litigating for clients when conflict is unavoidable. He is especially experienced in the sale or purchase of a business and rendering opinion letters for Single Purpose Entity financing transactions. He advocates for clients in all Delaware state courts. He is licensed to practice law in Delaware, Pennsylvania, New York, New Jersey and Massachusetts.
His practice focuses on business law and trust law. He manages both (1) The Williams Law Firm, P.A. http://www.TrustWilliams.com and (2) Agents and Corporations, Inc. http://www.IncNow.com which were both founded by David N. Williams, Esq. in 1974.