New York City is a thriving worldwide financial and cultural center and a draw for all kinds of businesses, and this center of gravity redounds to the benefit of the state. But do the laws of New York state contribute to the state’s attraction to businesses? We know that New York law is frequently the law of choice in business agreements, that New York City is often selected as the forum for litigation or arbitration, and that businesses sometimes make these choices even when the parties have no connection with the state. This is not just because New York contract law is well developed, but also because a statute enacted in 1984 facilitates these designations (NY General Obligations Law §§5-1401 and 5-1402).

On the other hand, some factors work against New York as a business center including the high cost of establishing and operating a business in or around New York City. New York’s corporate law and limited liability company law have never stood out as a draw for businesses. Delaware does a far better job at this—even though few Delaware entities locate their actual offices in Delaware.