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ElProlactin • today at 12:22 PM • 0 replies • view on HN

I don't have time to go into a long-winded explanation of why so many corporations are set up in Delaware (there's plenty of information online about this) but I want to address this point:

> this creates an uneven playing field for other states and who gets what powers of enforcement for business (/consumer) laws they pass.

Setting up your company in Delaware does not mean that you are exempt from the business and consumer protection laws in other states.

If you're a Delaware company and you violate consumer protection laws in California, violate environmental protection laws in Colorado, defraud investors in Maryland, etc., the relevant authorities/powers in those states will all be able to exercise jurisdiction over you.

Being incorporated in Delaware does not mean you have free reign to do whatever you want in any other state and have disputes over your actions adjudicated in Delaware.