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Internal Affairs Doctrine

By IncNow | Published October 19, 2013

A legal doctrine that the internal affairs of a corporation or LLC will be subject to the laws of the state of incorporation (and not the laws of the state where the business is being conducted). Internal affairs generally encompass corporate governance disputes generally between management and owners. This is why many businesses choose to incorporate in Delaware, to “opt-in” to Delaware law and simultaneously “opt-out” of their home state’s laws.

When deciding where to form your company, consider that Delaware has advantages over your home state that may benefit you. Go