Copyright Registration Sole Proprietorship Startups
I live in NJ but plan to incorporate in Delaware (DE) because the laws there are more business-friendly. And because so many US businesses incorporate there the business and legal communities are more familiar with the DE laws. Some investors insist on it. We're planning on growing large and probably taking investment so that makes sense for us.
Here's a bit of reading on it:
http://www.startupcompanylawyer.com/2009/03/03/what-state-should-i-incorporate-in/
If you're not planning on growing to a complex size, taking investment, and want to keep costs low, then incorporating in NJ may make more sense.