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11 Rutgers Bus. L.J. 1 (2014)

handle is hein.journals/rutgblaj11 and id is 1 raw text is: RUTGERS BUSINESS LAW REVIEW 11 Rutgers Bus. L.J. 3 Robert C. Holmes BENEFITS OF INCORPORATING IN DELAWARE VERSUS NEW JERSEY: BUSTING the MYTH and CLOSING the GAP ABSTRACT. The perception that Delaware is the preeminent state to incorporate a business as well as to adjudicate corporate disputes permeates the business world from corporations to limited liability companies and from shareholders to investment managers. The sheer number of companies that choose Delaware as their home state and the striking fact that fifty percent of Fortune 500 companies are incorporated in the State of Delaware support the proposition. No doubt, advantages exist for companies incorporated in the State of Delaware. However, these advantages are neither singular nor insurmountable by other states. Significantly, New Jersey was the first state in the nation to hold the title as the state for corporations to call home. Today, New Jersey's corporate and business entity laws are generally comparable to Delaware's laws, and even have some advantages over those of Delaware. For the most part, advantages associated with incorporating a business in Delaware over the State of New Jersey are greatly exaggerated, and any gap between the two states can be readily identified and addressed. A shared commitment among all three branches of New Jersey government can bust the myths associated with Delaware's preeminence and close any actual gap that might exist. It may be more difficult for New Jersey to determine whether the race for preeminence represents a sound policy objective or a morally offensive race to the bottom. New Jersey may find guidance through this conundrum by tracking signs of a current movement toward a federal corporate law.