Because of its business-friendly laws, and a special court for resolving business disputes, Delaware has been the most popular place for large & small businesses to incorporate. In fact 50% of the NYSE companies are Delaware based.

In a bid to become the "Delaware of the West" Nevada lawmakers recently approved legislation its sponsor says is the "capstone" of a decade-long effort to be a magnet state for companies.

The legislation gives corporations extra legal protections by requiring stockholders to show "intentional fraud or knowing violation of the law" - rather than mere negligence - to sue directors, and making it harder for courts to hold individuals liable for corporate actions. Delaware statutes and case law offer similar protections.

Nevada, which already has a court patterned after Delaware's 210-year-old Chancery Court. Within the past five years, Delaware-style courts aimed at providing swift resolution of business disputes have been established in at least eight states, including New York, Illinois, and Pennsylvania, according to the American Bar Association.