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"If it sounds to good to be true, it ain't." -- Inglourious Basterds
Fortune 500 companies have good reason to incorporate in Nevada or Delaware -- Wall Street underwriters require them to. Incorporation rules in those states make it easier for large public companies with thousands of shareholders to comply with certain securities law requirements.
For the average small-business owner, these considerations don't apply. Unless you're doing business in NV or DE, most small business owners are unlikely to obtain tax benefits or additional asset protection.
To have your personal assets protected from business-related liabilities, your business should be registered in the state where you're doing business. If you're registered out of state, there's no protection. Your personal assets are exposed.
As for supposed privacy benefits -- because your business will need to register as a foreign entity in the state in which you do business, you'll have to disclose all of the individuals in management anyway.
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"We are all born ignorant, but one must work hard to remain stupid." - Benjamin Franklin
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