Nicholas Bushelle, associate and corporate and venture tech attorney, Dentons Davis Brown: Moving corporate domiciles out of Delaware: For over 100 years, Delaware has been the predominant state of formation for U.S. business entities due to its well-developed corporate case law and specialized judicial bench. That may be changing, as Delaware faces an exodus of tech companies such as SpaceX, Tesla, TripAdvisor and Dropbox to Texas or Nevada, which may have more management-friendly laws. This trend intensified after the Court of Chancery ordered the rescission of Elon Musk’s $55.8 billion compensation package from Tesla despite receiving shareholder approval. Musk has urged companies to relocate to states he believes are less politically motivated. While this issue has gotten a lot of attention in the news, Delaware remains the most popular choice, and in the venture tech industry, VC funds still normally want the startups they invest in to be incorporated in Delaware.
Read more about legal trends in technology at BusinessRecord.com