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Generic Form of Order Delaware

Generic Form of Order Delaware

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You should form a corporation in Delaware because the laws are better than any other state in the country, as far as predictability and protection. In Delaware, it's very difficult for a creditor of the business to pierce the corporate veil and sue the stockholders directly. For small businesses, that is very important. In Delaware, as a manager of a corporation, your a director or an officer. When you're an officer or director, many other states impose liability on you for making bad decisions. Whereas in Delaware, you're protected by the Delaware business judgment rule. What that does is it provides a shield for you from being second guessed on making business decisions. So you can take risks without the threat of lawsuit from stockholders for those business risks being a bad decision. So you're allowed to take risks to help the business. That protects you as a manager of the business. Many other states have elected judges and they have juries. Whereas

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