A front page article by Liz Hoffman in Monday’s Wall Street Journal noted that some companies are convinced Delaware is less of a corporate haven than it used to be. Some companies feel the state has become less hospitable toward business (for example, by not doing enough to curb ever-growing shareholder litigation). Nevertheless, Delaware remains by far the first choice of incorporation for large companies. It is the legal home for more than half the public companies in the United States.
This is a good reminder that laws and court systems can vary quite a bit from state to state.
Large public companies have traditionally taken advantage of what they consider to be favorable Delaware law. Asset protection planning – – for both companies and individuals – – also needs to carefully take into account differences in state laws. In the past, I frequently advised clients to set up asset protection trusts and/or LLCs in Delaware. Now, Ohio is an excellent choice for both. Asset protection attorneys must diligently follow changes in state laws to better assist clients with choosing the most suitable asset protection strategies. Differences in state laws can be very relevant to individuals and smaller companies as well as large public corporations.