Why is facebook incorporated in delaware

As you may know, many viewed the IPO in hindsight as a bit of a flop, or at least somewhat disappointing. Regardless, shareholders who jumped in right away are certainly reaping benefits today. Much has changed in the social media landscape since and will surely continue to do so year after year. For now, however, Facebook is as big as ever.

Visit macrotrends. These days I think more and more people want to use services from companies that believe in something beyond simply maximizing profits. Facebook decided to create two classes of Common Stock: class A and class B. Both classes had a.

Class A stock would be publicly traded, while class B would be much more exclusive for company insiders, including Zuckerberg and would carry 10 times the voting weight of class A stock.

So, even though Zuckerberg offered Learn more about the flexibility that Delaware corporate law provides when it comes to authorizing different classes of stock. Delaware Entity Name Search. This article provides general commentary on, and analysis of, the subject addressed.

We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc.

Former Delaware Gov. She died at the age of Biden talks political divide at Delaware Chamber of Commerce dinner. Sign up for our weekly newsletter. Share this Facebook Twitter Email. You may also like. About Jan Ting Read more. Delaware is one of the easiest places in the world to set up a business with its Department of State office open until pm on Mondays to Thursdays and midnight on Fridays.

It can take less than an hour to incorporate a company. It also requires very little paperwork from businesses setting up. Critics argue that lack of demand for credentials or transparency allows criminals to take advantage of the system. Many law-skirters have been caught laundering money through shell companies incorporated in Delaware. However, the other reason why businesses are so enamoured with Delaware is because of its court system. The state set up the respected Court of Chancery in , which only hears business disputes.

There is also more than years of case law and precedent which means there are very few surprises in the verdicts. Corporate lawyers all over the country are well versed in two sets of business law — those of their home state and those of Delaware, which is taught in academic institutions across the US.