Each year the United States Chamber of Commerce announces which States have the best and worst legal system. For the fifth year in a row, Delaware has received the top honors, being named the State with the fairest legal system. A survey of U.S. businesses ranked Delaware as the State doing the best job of creating a fair and reasonable legal environment. As many of the top businesses in the United States, and a growing number of small and medium sized businesses, have chosen Delaware as the place to incorporate, the top ranking is not a surprise.
The results of the 2006 study, which was officially conducted for the United States Chamber Institute for Legal Reform by The Harris Poll, surveyed a national sample of in-house general counsel or other senior corporate litigators to explore how reasonable and fair the legal system is perceived to be by U.S. business. In order to ensure the integrity of the results, respondents were first screened for their familiarity with States, and those who were very or somewhat familiar with the litigation environment in a given State were then asked to evaluate that State.
When deciding where to incorporate, there are a number of considerations that businesses must take into account. Perhaps the single most important consideration for any business is the legal environment within the incorporation State.
Over the past few years, several States have tried to create more favorable climates for businesses; but year after year, it is Delaware that provides the most fair and competent judges, the best and most efficient handling of litigation proceedings and juries that are competent, fair and predictable. It is also Delaware that provides the most flexible and business-friendly incorporation laws, including minimal regulation and minimal yearly filing requirements.
While anonymous ownership may not be important to all, in some situations there can be a legitimate business interest in keeping matters private. Unlike many other states and countries, Delaware offers an answer to those in search of privacy. Simply stated, in Delaware, if you want to create an anonymous LLC you can do just that. Nowhere in the Delaware laws is there any requirement that the managers or members be identified in any filing. In fact, the Delaware law relating to the formation of LLC’s specifically says that the names of the managers or members may be included, but are not required. See Delaware Code § 18-102. Therefore, if anonymity is what you want then Delaware is the place to incorporate, not Nevada.
When deciding to incorporate in Delaware, companies of all sizes receive the benefit of the most developed business laws in the United States. The Delaware Chancery Court is renowned throughout the country for its handling of complex business matters. In fact, other States attempting to copy Delaware’s successful business climate turn to and defer to the Delaware Chancery court and its rulings, thereby acknowledging the superior climate provided to businesses by the State of Delaware.
Where you incorporate is a big decision, but for companies of all sizes Delaware has made the decision very easy. Whether you are a start-up business, family business, small business, large business or subsidiary, Delaware is the place to incorporate.
Whether you are forming a LLC, a partnership, a general corporation or a C-corporation, you will benefit from the legal system in Delaware, which is most preferred by majority of small and large businesses in the USA.