Professor Larry Ribstein, a nationally recognized LLC expert, was interviewed about his newest book, entitled The Rise of the Uncorporation published by the Oxford University Press, on the blog called New York Business Divorce here. We previously highlighted the good professor’s book here. A nugget from the interview is an insight from Ribstein’s research that on a nationwide basis, there is no state that comes close to Delaware in terms of the state of preference to form LLCs outside of one’s home state. More precisely, he says in his interview as follows:
"… we find that the larger LLCs that form outside their home jurisdiction basically are choosing whether to form at home or to form in Delaware. Only a couple of other states host substantial numbers of out-of-state LLCs, and they don’t come close to Delaware. We conclude that firms form in Delaware because they want their litigation handled in Delaware’s high-quality business courts, not because they are seeking stricter or laxer laws. This is probably the same factor that explains publicly held corporations’ jurisdictional choice."