Why Form 2220 Incorporating 2023-2024

Hello everybody, so glad to see you! I'm Aiden Kramer with the law office of Aiden Kramer in Colorado, and you're watching All Up and Your Business. Okay, it's so exciting. So, it's pretty common general knowledge that a lot of businesses form in Delaware under Delaware law. There are really good reasons for many businesses to form in Delaware. A lot of big businesses started forming in Delaware to take advantage of the benefits that it provides, and then a lot of other smaller companies started catching on, seeing that, well, if these big businesses are doing it, then we probably should. It seems like a great choice for everybody. And while that might be the case for some businesses, most businesses aren't really going to experience a whole lot of benefit from forming under Delaware law. So, in this episode, I'm going to talk about why so many companies form in Delaware and the pros and cons of doing it, and to help you decide if maybe you should file in Delaware or if it might just be a waste of money and time. Delaware, as a state, is pretty business-friendly. Its statutes and laws related to businesses are written to give businesses a lot of freedom - freedom in how they operate the business, freedom in their transactions with shareholders and investors. That's a big reason why a lot of companies form in Delaware, to take advantage of those business-friendly laws. Another benefit that Delaware provides is with its court system. When there's an issue that comes up in the court system concerning a business - shareholder disagreements, owner disagreements, things like that - a judge, what they call a Chancellor, makes the decision in court, rather than in a lot of states where it's a jury who...