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The Delaware Effect

How-and why-the nation's second smallest state became a coveted business domicile.

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On the surface, Delaware might seem like an unlikely candidate for a center of the business world. In physical terms, it's the second-smallest U.S. state, and population-wise it hovers near the bottom, too, followed closely by North and South Dakota, places known more for their windswept prairies than their crowded urban centers. Yet despite Delaware's diminutive stature, in terms of corporate formations it continues to be a U.S., and indeed an international, heavyweight.

Which raises the question: Why?