system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why do so many corporations choose to form in Delaware?

I've noticed that a lot of companies, including banks, choose to incorporate in the state of Delaware and always wondered why.
gpt
The basic reason is that Delaware has turned itself into a expert in the area of corporate law. It's been a conscious decision by DE to do this in order to attract exactly this kind of activity. What does that mean in practice?

* Delaware has an extremely robust corporate code, with a very fulsome case history. So the law is clearer in DE than it is in most any other state on corporate law issues.

* DE's court system is designed to handle these cases, and you will have knowledgeable and experienced judges looking at your cases.

* DE's executive infrastructure is superb. Stuff like filing certificates, making payments to the government, etc. is extremely easy and fluid. DE can process filings in as little as 30 minutes; other states take days.

Contrary to some other claims here, taxes have almost nothing to do with it. The Federal taxes don't matter, because they apply in any state. State taxes almost entirely pick up activity within the state, whether or not you are incorporated there. Lastly, DE's cororporate taxes aren't even particularly low.

So, that's the basic answer. DE has made itself an expert in corporate law, and corporations therefore come to is as 'customers', if you will.