Many new business owners are surprised to find out that they are not legally required to form a corporation in their home state or where the business is physically located. The decision to incorporate your business is a big step in the future of your company, but choosing which state to incorporate in can be equally important. While most business owners choose to incorporate in the same state where they are located, there are some good reasons to consider incorporating in another state. The primary advantages of incorporation in a "corporation friendly" state fall into three categories- total cost of incorporation, taxation on the new business, privacy concerns. If you are considering incorporation, here are a few reasons that you may want to pick a different state.