What happened: Texas is making a bold move to compete with Delaware as a top destination for business incorporation by establishing its own specialty business courts—part of Gov. Greg Abbott’s strategy to continue to attract major corporations following recent high-profile relocations like Tesla’s. But in order to truly compete, it’s worth looking at the other advantages Delaware has at its disposal in attracting businesses.

Remind me: Delaware has long dominated business litigation due to its renowned Court of Chancery, which handles complex corporate disputes quickly and efficiently. But that’s not all…

• Delaware’s robust corporate governance statutes have been tested for decades, meaning corporations and their executives have a clear track record to follow when it comes to the rules of the road for operating.

By the numbers: More than two million businesses had incorporated in Delaware as of last year, including about 70% of Fortune 500 companies and 80% of US initial public offerings.

TLR Thoughts: Texas’ new business courts are a transformative step in strengthening our state’s pro-business environment. Now that they are operational, the Legislature has the opportunity next session to build on its commitment to economic development by strengthening our corporate governance laws so that job creators have confidence in what it means to do business in the Lone Star State.

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