Delaware has the most company friendly laws in the US and Nevada follows suite. Godaddy offers as a service to help you setup a LLC in any state you wish and they explain some and give a few good tips. But most everyone you'll talk to will say Delaware or Nevada.
Link: http://www.godaddy.com/business/inco...-services.aspx
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The truth is not affected by the beliefs, or doubts, of the majority.
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