Red states are outcompeting blue states economically, and no red state has been more serious in this effort than Texas. Its regulations are few and reasonable; the new Texas Stock Exchange is open for business on Y’all Street; and the state constitution prohibits the imposition of a personal income tax. All this explains why Apple, Tesla, Toyota, and Eli Lilly are expanding, building plants, and creating jobs in the Lone Star State. But Texas isn’t satisfied yet—it wants to be a one-stop shop for business, and because a company’s place of incorporation is legally separate from where it operates, the state is also moving to challenge Delaware’s dominance as the jurisdiction of choice for incorporations. Texas has thus revamped its corporate laws and created the Texas Business Court to challenge the famed Delaware Court of Chancery.
