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In this tutorial, Alec explains the concept of the "circuit of incumbency" related to Delaware law. He notes that instead of providing exhaustive details about a company on the certificate of formation, essential information can be included in a single document called the certificate of incumbency. This document can contain the company's owner names, shareholders' interests, and addresses. Alec highlights two key differences: the certificate of formation is officially accepted by the state, while the certificate of incumbency is approved by a notary in Delaware. Additionally, the certificate of incumbency allows for a more concise presentation of company information.