Topic
Legal & Ethical Environment of Business
Instructions
After reviewing the website for the Delaware Division of Corporations (Links to an external site.), and reading the article on Delaware attracting corporation on page 617-618, complete a writing assignment that addresses these issues and answers these questions.
- Research the law of corporations in another state besides Delaware.
- What issues do businesses need to consider when incorporating? Include at a minimum names, tax consequences, stakeholders, etc.
- How do these states compare and contrast?
- What ideas justify the opinion that Delaware is preferred for corporate formation?
Answer Preview
The state’s determination relates directly to the legal environment whereby it is important because it determines the laws that apply in the initial incorporation and the event of any dispute adjudications. These considerations include the name of the business, which entails assessing whether any other name exists by that name. If not, the business proceeds to reserve the name for which the name reserve’s subsistence is dependent on individual state’s laws. In many instances, it is often for 120 days (Mancuso, 2015). Additionally, a determination as to shareholding and management is also critical. Management includes articulating the articles of incorporation wherein issues on directors and related positions are reflected. Besides, considerations include assessing the tax obligations and tax reliefs applicable for business in the state.
Word Count: 930