Delaware is the easiest and most efficient state in which to form a company. Delaware is the state of incorporation for more than 60% of Fortune 500 companies. There is an established body of laws which relates to corporations and LLCs in Delaware. Delaware is the only state to have a separate business court system (the Court of Chancery). This is meaningful to entrepreneurs for two reasons. First, there is a long-established body of laws relevant to corporations that has been tested in the Delaware courts over many years. In the event of any legal action, therefore, there is a high degree of predictability. Second, Delaware has a long record of pro-management decisions. Venture capitalists (VCs) feel more at ease when they see that a company is incorporated in Delaware because it is familiar to them.