I've heard that most US corporations are in Delaware or Nevada because they are the friendliest to corporations.
I don't have an office or anything, but I'm looking to start an internet based business that would be run from my home office and would just have a PO Box somewhere. Can I incorporate in Nevada?
This type of Q comes up frequently, reflecting the urban-legend status of forming entities in DE and NV.
Short answer: You can, but you probably shouldn't.
Slightly longer answer: You probably should incorporate in CA because if you incorporate elsewhere but do business in CA, you will need to register in CA, too - meaning higher startup costs and paying two states' annual franchise taxes.
This issue is discussed in the following posts:
Dana's comments do not apply to most web or internet business. YOUR INTERNET BUSINESS SHOULD BE INCORPORATED IN NEVADA!!!!! HERE IS WHY!
Its very easy to setup shop in vegas, but live in california. Worst case is that you have to pay state income tax on 100% of your income, but you leave room to reduce that amount easily with dual residency, or just by being a Nevada resident all together.
Cost of living in NEVADA is a bargain. I am surprised more entrepreneurs dont take advantage of it.
If you plan on ever having employees, or dont like paying to much in taxes consider Nevada & Wyoming. Nevada is your safer bet, because it offers low cost of living and still a lifestyle that is acceptable (specially in vegas)